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The Catch
ByNot terribly encouraging:
One big worry stifling activity in the markets is that if the government is doing so much lending and backstopping now, it's going to need to do a lot of borrowing, too, to finance those efforts. And if the government is seeking lenders to buy its debt, what is going to happen to other borrowers looking for lenders?
As the Federal Reserve and Treasury act to rescue borrowers, Simons said, ''they're starving other private sector borrowers.''
And so the attempt to resolve the credit crunch also crunches credit.
