Not necessarily. The Fed can maintain its general policy and intervene selectively to deal with a specific emergence (as long of course as its specific, not generalized). It did this re the Long term Hedge Funds and other potential major bank closures in the 80s and 90s
-----Original Message----- From: PEN-L list [mailto:[EMAIL PROTECTED] On Behalf Of Jim Devine Sent: May 15, 2005 3:03 PM To: [email protected] Subject: Re: [PEN-L] more hedge fund angst if there's a financial problem due to big Hedge Fund melt-down(s), the Fed may find itself between a rock and a hard place (to use the late Hyman Minsky's phrase). Saving the Hedge Fund and stopping the spread effects of a default goes against the Fed's current anti-inflation goals. JD
