Euro Crisis Makes Fed Lender of Only Resort! No reserve. No resort.Submitted by Mark Twain on Thu, 09/29/2011 - 00:10
Bloomberg Headline - Sep 28, 2011 11:13 AM PT
[The Fed: Now leander of only resort? No reserve! No resort! Not even a shanty....]
Lawmaker Criticism: Representative Ron Paul, a Texas Republican who wants to abolish the Fed, and Senator Bernard Sanders, a Vermont independent, have criticized its loans to foreign institutions. [And so many unmentionables.] ...
Biggest Borrowers: After the criticism earlier this year of lending to overseas institutions -- including Arab Banking Corp., part- owned by the Central Bank of Libya,
after Lehman collapsed in 2008 -- New York Fed researchers said U.S. branches of foreign banks were among the biggest borrowers from the discount window because they lack deposit bases. The window is the Fed’s oldest backstop-lending tool. ...
Policy Gap: “The Fed’s lack of a lender-of-last-resort policy really does create tremendous market uncertainty” ... [This is propaganda. There is no such power. The Fed is duped into being the "Last lender" where even fools rushed out. There is no resort. No even a shanty!]