watch here...
Any more reasons to keep paying back your debts?
From Denninger...
So if The Fed is in fact "in the business of moral hazard", then we have just had The Dallas Fed admit a truth that is in fact quite uncomfortable for anyone who has a brain and is willing to use it - The Federal Reserve, as a consequence of how its mission is defined and how it chooses to discharge that mission, shifts costs and losses away from those people responsible for them and onto those people who have been and are prudent - that is, the American Public at large.
In short, what Rosenblum admitted - on national television - is that The Fed as currently constituted and operated exists to rob the public to cover the losses of wealthy investment and commercial bankers, thereby allowing them to take risks that they would never take in a market where idiocy (or even outright fraud) was punished by bankruptcy.
