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

[Sean Andrews]

On Sat, Mar 15, 2008 at 6:41 PM, Shane Mage <shmage at pipeline.com> wrote:
>
>  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?
>

looks like it...but maybe there's something we don't know.

http://www.financialweek.com/apps/pbcs.dll/article?AID=/20080311/REG/110441751

"Bloomberg)—The Federal Reserve plans to lend up to $200 billion of
Treasury securities in exchange for debt including private
mortgage-backed securities that have slumped in value as homeowners
defaulted on their payments."

s