Wednesday, November 26, 2008

Willem Buiter, Financial Times
What is to be done? Banks that don’t lend to the non-financial enterprise sector and to households are completely and utterly useless, like tits on a bull. If they won’t lend spontaneously, it is the job of the government to make them lend. Banks have no other raison d’être. I can think of three ways to get them to lend using the coercive powers of the state.

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