@andrew_leach @stephenfgordon Everyone seems to agree that we shouldn’t have bought the bank, lol, or not provided support.
@andrew_leach @stephenfgordon Agreed, but I don’t think Macdonald equated them. He compared them. But that’s fine.
@andrew_leach @stephenfgordon Agreed, but I don’t think Macdonald equated them. He compared them. But that’s fine.
@andrew_leach Have a good weekend. @stephenfgordon
@andrew_leach Have a good weekend. @stephenfgordon
@andrew_leach @stephenfgordon As I research this I am discovering that ‘liquidity bailout’ is a commonplace term in finance reporting.
@andrew_leach @stephenfgordon As I research this I am discovering that ‘liquidity bailout’ is a commonplace term in finance reporting.
@andrew_leach @stephenfgordon Agreed. I think this report does contribute to public discourse in a positive way.
@andrew_leach But some also deny that the banks, and their clients, were ‘supported’ or ‘helped.’ @stephenfgordon
@andrew_leach I agree that #journos that conflate solvency bailout with liquidity bailout are wrong to do so. @stephenfgordon
@stephenfgordon In an effort to find common ground, I will agree that it is infuriating when #journos cut and paste press releases. :)
@stephenfgordon Interesting. I’m not convinced by anything I’ve heard or read by you so far. But I’m willing to have my mind changed.
@stephenfgordon You think the report did more harm than good?
@pinnyrat @stephenfgordon I don’t see that there’s anything wrong with folks scrutinizing banks and governments and their relationship.
@stephenfgordon I have not made a *conflation* or an *equivalence*.
@stephenfgordon that was also the case with General Motors in the US. Not to conflate solvency bailout with liquidity bailout. :)
True. @stephenfgordon: Pretty sure a significant portion of those who have heard about this think the govt secretly gave banks $114b.
@stephenfgordon although I see how ‘liquidity support’ could have different meanings. I Think I might see what you’re getting at.
@stephenfgordon although I see how ‘liquidity support’ could have different meanings. I Think I might see what you’re getting at.
@stephenfgordon if I’m not in the business of doing it, and I’m doing it so your clients don’t lose their mortgages, it’s support.
Wait. Liquidity support might actually be a bailout when your business model is borrowing and lending. #cdnpoli
@oliveridley Interesting. It appears to be common for financial writers to refer to liquidity support as liquidity bailout. @stephenfgordon
@stephenfgordon Agreed.
@stephenfgordon But, for the record, in my post I do note that it *was not a bailout*
@stephenfgordon I found definitions that included liquidity, esp. when borrowing is a central part of the business model.
@stephenfgordon re: interest rate, I’ll add that to my post.
@oliveridley @stephenfgordon I agree – it seems like the banks, and their many clients, needed the support.
@stephenfgordon One public relations test might be to compare this ‘bailout’ to other public instances of ‘bailouts’. @oliveridley
@stephenfgordon I did see the press release and I did link to it.
New post: http://t.co/RufyjXDn In which I note that for banks to *be banks* they needed to borrow from the government #cdnpoli