On Dec 13, 2007 9:20 AM, Doug Henwood <[EMAIL PROTECTED]> wrote: > On Dec 13, 2007, at 11:55 AM, Charles Brown wrote: > > > Fed IS footing bill for lenders' crisis (that is, they will make us > > pay > > for it) > > How?
By accepting junk collateral at the new auction, for one thing: http://www.frbdiscountwindow.org/discountmargins.pdf Specifically non-AAA CLO/CDOs at 85% par. > And what will it cost if they do nothing? > > Doug Good question. Fear mongering about "collapse of the financial system" apart, would you care to speculate? On another note what are the merits of "liquidity injections" as opposed to an expanded Paulson plan to help sub-prime (i.e. poor) borrowers as a way to address the current crisis? I am not opposed to bailouts, but why do they always have to bailout the rich? -raghu.
