i smell fear, page-232

ABERS,

For TED to turn the Banks themselves have to be confident that they can lend to each other. Bu this I mean that the Lender has to be confident that the receipient will be around by the end of contract and will pay back the Principal lent to it.

The Central Banks (ECB, BoE, Fed etc) are trying to simulate this by creating liquidity.

As many observers have already noted this will have minimal impact because the underlying trust is still required.

To parallel the situation... If you and I are friends and I punched you in the nose yesterday and gave you a present today would you trust me tomorrow?

Rhetorical Answer: Probably not it will take time for our friendship to mend...

This is the same with TED he's stuck his head in the oven until such time as he knows that things around him are safer. When he knows things are safer he will start to decrease the rate at which he will lend money and he will turn.