Monday, 20 July 2009

some more thoughts

The Raven has noted that other market participants have poured cold water on the idea that CIT averting bankrupcy proceedings is really a positive given that it hardly shook the market at all when there were fears they'd go into chapter 11. The Raven thinks thats a little disingenuous, the reason to cheer this piece of news is the fact that its a private solution and doesn't involve government intervention and taxpayer capital. That's positive on two fronts; firstly that private capital is prepared to take risk again of this sort and scale (not huge really but still it wouldn't have been there six months ago) and secondly because it means that private capital is not being crowded out by government intervention.

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