Banking crisis

Bush flexes his MBA muscles and says liquidity is fine. "There is plenty of liquidity." But in the meantime the Fed has to put $38bn of "new money" (fresh off the presses) into the system while overseas central banks have to put $91bn into their markets. Fed chairman is looking down the barrel of having to decrease prime which may fuel inflation. And the mortgage crisis has just begun. Banks and lending companies are looking at deeper holes later this year and into '08.