[Marxism] [Pen-l] Michael Hudson: The game is over
sartesian at earthlink.net
Sat Jun 21 11:02:09 MDT 2008
What's your take on the FT report on 6/09-6/10, based on the BIS release
that European bank dollar borrowing surged dramatically in recent years; the
FT attributing the disparities in the LIBOR rates with the increased
dependency of European banks on dollar funding, dollar denominated loans
from US banks, to the tune of about $500 billion in the last 4 years (equal
to the German, Swiss, and UK banks invested in SIVs)?
Their explanation for the divergence in the LIBOR rates is that European
banks have not had, and do not have, access to US money market, while US
banks tripled their use of the MMFs to raise cash between 2003-207 by the
amount leant to the European banks, and that now the US banks have curtailed
there lending to the Europeans.
I personally think that US capitalism will, as conditions worsen, actually
strengthen its position in world markets.
----- Original Message -----
From: "Steve Palmer" <spalmer999 at yahoo.com>
To: <sartesian at earthlink.net>
Sent: Saturday, June 21, 2008 12:40 PM
Subject: Re: [Marxism] [Pen-l] Michael Hudson: The game is over
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