The wonders of the free market

Today’s Frettabladid quotes a source familiar with the market who maintains that the banks lent massive amounts of money to private companies to buy shares in the same banks. The only collateral was the shares themselves so that the companies stood to gain if the shares went up but lost nothing if they fell.

The purpose behind this was to artificially keep the shares of the banks high to attract other investors, and keep current investor’s confidence.

The wonders of the free market seem to know no boundaries.

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