I have read the newspaper reports and analyses; I have surfed the web commentators and blogs; I have watched and listened to the pundits and experts; I have followed the unfolding events.
But I still have not come across a clear explanation for the current banking crisis. And without an understanding of a problem, how can one chose one proposed solution over another?
As far as I can tell, at bottom it is about trust. The banks just do not want to lend to each other. The banks do not feel confident; the banks lack trust.
If this is indeed the case, then it is hard to see how legislation, and taxpayers' billions, can alleviate the problem.
One cannot legislate to make people trust one another, just as one cannot legislate to make people love or hate one another.
If such things were possible, then politicians would legislate to make us trust them.