Funding crisis: the funding treadmill

Anybody who has been on an accelerating treadmill knows the feeling. It starts off at a gentle pace. Then it speeds up. You are panting. Eventually, you have to slow down or you risk losing your footing. Banks on the funding treadmill are going through a similar process. The only difference is that many of them can’t get off. The desperate and ultimately unsuccessful need to raise money at a faster and faster pace is dragging down a long list of banks. Fortis, Washington Mutual, Germany’s Hypo ...