"I think the actual scenario was that there was no credit available at rates they were hoping to pay." Not on the traditional market from banks (i.e. commercia

"I think the actual scenario was that there was no credit available at rates they were hoping to pay." Not on the traditional market from banks (i.e. commercial paper and repo) -- banks weren't lending money at any rate at the time as they really couldn't. Keep in mind that bank loans are basically "money printing", something that can't be done when your reserve ratio is already illiquid, as it was for most in mid-late 2008. Individuals and holding companies like Buffet/Berkshire with actual reserves OTOH were giving high interest rate loans out (i.e. to Goldman), but those were bespoke negotiations.