Asia Times Online, 23 May 2009, Chan Akya
When you give someone US$1 billion as an interest-free loan, with an uncertain payback period and no interest costs, do you think they will:
a. Settle all their outstanding debts and start earning money to repay this new facility?
b. Invest in some safe securities to eke out a secure return?
c. Bet the whole thing on red?
If you answered "c", then congratulations - you are now eligible to become a banker in the United States. The unsaid part of the current global rally in risk assets is that the process is being driven almost exclusively by financial institutions that are currently in the intensive care unit of the US Treasury.
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