[lbo-talk] Fed's looking a little scared

[B.]

Quick question - is "going to the Fed's discount
window," and what I read below, essentially the
postmodern way -- sorry, I mean the economist's wonky
way -- of saying "going to the doorstep of govt. help
with hat in hand?"

I know it's probably a little bit more complex than
that, yadda yadda, but to me, a lay person, that's
what it reads, esp. since the NYT headline mentioned a
"bail out." The Investopedia online dictionary of
econ. terms mentions going to the Fed's discount
window is "highly discouraged."

http://www.nytimes.com/2008/03/14/business/14cnd-bear.html?ex=1363147200&en=4b57b6b4bce70167&ei=5088&partner=rssnyt&emc=rss

-B.

Doug Henwood wrote:

"This press release just came out. Earlier this
morning, they announced that Bear Stearns, a brokerage
firm that serves a lot of hedge fund clients that has
had trouble with some of its own funds  lately and
which has been rumored to be in trouble, had a line of

 credit with JP Morgan Chase, which in turn has a
direct pipeline to  the Fed's discount window. Bear
can't borrow directly from the Fed, so this is the
next best thing. This is all highly unusual."