Earlier this week Ben Bernanke nicked my idea, published last week, on how to solve the liquidity crisis.
On Tuesday, Bernanke came up with the Commercial Paper Funding Facility (CPFF), as a way to get the
If the banks won't lend, then best to find other ways to get the central bank's money to the real economy where it is needed.
Bernanke didn't credit me with the idea, but that didn't surprise me. Bankers pretend they know everything about banking when they clearly don't.
You borrow, you lend, you try and make sure that the interest on your borrowings is lower than the interest on your lendings, and that your borrowers are likely to pay you back.
Not a complicated business. But it's beyond the bankers. Clearly such mugs can't be trusted with more public money.
Incidentally, what scale of disaster is necessary to wipe that self-satisfied smirk off the face of the Governor of the Bank of England, Lord Mervyn King?
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