Sunday, 5 April 2009

The new IMF - bridge loans to future bridge loans etc.

It is now apparent that the new mission for the IMF is to be the lender of last resort to the global financial system. It's role is to provide a safety net under the system to protect itself from falling over. How that logically differs from an infinite regress or loop I guess is better left unspoken.

Whenever and wherever previous capital which has been invested in the global economy that is deemed too big or strategic to fail by the newly empowered IMF bankers, there will be new "bridging" capital supplied to maintain the value and integrity of the old capital.

Perhaps Mr. Madoff should be engaged as a consultant to the bank.

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