Saudi Banks Offered $4BN Bailout To Avoid Liquidity Crisis

``In an effort to avoid a full-blown banking crisis, Bloomberg is reporting that the Saudi Arabian Monetary Agency, the Saudi central bank, has offered domestic lenders $4BN in discounted, 1-year loans to ease liquidity constraints.  Banks in the kingdom are facing a cash squeeze as the government withdraws deposits and sells local-currency debt to fund the budget deficit... This announcement should come as no surprise to our readers (see "Saudi Arabia Admits To A Full-Blown Liquidity Crisis: Will Pay Government Contractors With IOUs, Debt"). The Saudi circular ref whereby "low oil prices -> budget deficits -> more oil pumping -> even lower oil prices" can only end badly.''