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The only problem with that argument is that it doesn't explain why bankers would want dollars instead of debt assets in the first place.

I don't see bankers in an active position now. They made their move when loaning, and now is up to borrowers to decide whether to return debt as quickly as possible (hence, pushing cash to bankers) or to keep "assets" for bankers.

The only thing than bankers can (or cannot) do is to lend more. But here they are reasonable enough with cynic value estimates of potentially new loan "assets".

by das monde on Wed Sep 2nd, 2009 at 11:11:28 PM EST
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Absolutely right.  People are not really trying to pay back their bankers.  They are selling assets, however, and bankers are being repaid incidentally because they hold liens on any of those assets.  They're not being repaid all they were owed, but, nonetheless, they are gaining cash that they could lend if they wanted to.
by santiago on Thu Sep 3rd, 2009 at 11:16:27 AM EST
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