I would expect this to lead to more bank failures, which will likely lead to more bailouts, which pushes us further down the road of socialism and hyperinflation. Assuming there were no bailouts or fewer bailouts we'd likely be having a deflationary depression, though the Federal Reserve and central banking tends to have an inflationary bias, as this is more favorable to the Fed, its owners, and the power elite in general. -- KM


BEIJING, Sept 25 (Reuters) - Chinese regulators have told domestic banks to stop interbank lending to U.S. financial institutions to prevent possible losses during the financial crisis, the South China Morning Post reported on Thursday.

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