the liquidity trap is really a credit ration contraction
if you talk like joe stig about a damaged set of credit channels
you are playing cover up
even if without intention
the existing private channels "could" loan to various applicants
they don't
because their narrow horizon own bottom profit calc cum default uncertainty
in a time like now of stagged effective demand
kills loans that in the event would create the very effective demand conditions to justify themselves
co ordination problem
really all these post crisis bs moves from a purely technical model maximizer agent pov
cry out for default protection from "above "
much like the implicit protection the big bail made flesh
the toxic bubble inside the big boys
was nasty in consequence
but that's not relevent eh ??
nothing prevents using same means to a higher not lower end
