[lbo-talk] Dean Baker: Harsh words on US govt bailout of Bear Stearns

[Shane Mage]

On Mar 15, 2008, at 2:27 PM, Doug Henwood wrote:
> He's going to stop the
> Fed from doing what central banks are supposed to do (i.e. in
> Bagehot's words, lend freely against good collateral at penalty  
> rates)?

But isn't this actually lending freely against collateral so suspect  
that nobody else (ie., J.P. Morgan) will lend against it?

Shane Mage

"Thunderbolt steers all things...it consents and does not consent to  
be called Zeus."

Herakleitos of Ephesos