Restating the Obvious

Free government cheese! Free!

Banks are like that. They touch the Fed for overnight money. Last night, according to Bloomberg, just shy of $50 billion.

As of recently, the Fed is also allowing investment banks to touch it for a tenner till tomorrow.

If you think commercial banks are in trouble, they only needed $50B. The non-bank banks put their hands out for three times as much.

It's hard for a backwoods business reporter to know what to make of this. Are the non-banks really that badly run, or is Wall Street operating like the Maui Food Bank?

The Maui Food Bank is always on the verge of being out of food. This could be because there are more and more desperate people on the island who cannot feed their families without help. But it could also be because the food bank does not have a means test. Anybody who says he is hungry is assumed to be hungry and is given food.

Once word gets around, there will always -- always -- be so many people asking that the food will run out.

Seven hundred billion dollars? Will it be enough? What, are you kidding? The demand for free money, like free cheese, is limitless.

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