“At a Harvard panel discussion…, Gregory Mankiw–Harvard economist and Chair of the President’s Council of Economic Advisers 2003-2005, made an interesting point: The liquidity crisis isn’t real. Or, to restate it: Any liquidity crisis is caused by the promise of a government bailout. Greg said that his many friends in investment banking said that there is plenty of money to invest in financial services, but right now it is ‘sitting on the sidelines.’ Why? Because the financial services industry does not want to pay the terms required to get that money back in circulation (e.g., give up equity). As he put it, why do business with Warren Buffett who will negotiate a tough deal, if you believe that the government will ride in soon with cheaper cash?” (Credit Slips)