[Jotapay]

I'm sure this will end well. Looks like Dante is getting warmer.

Fed’s first foray into unsecured loans

The Federal Reserve is working with the US Treasury on plans for a dramatic move into unsecured lending in the hope that this extreme step could help bring credit markets back to life.

As well as unsecured lending to banks, this could lead to the Fed directly purchasing commercial paper or funding a special purpose vehicle set up to do this.

[RdSnt]

This was inevitable. The paper they said they'd purchase to secure the money they throw at the banks is worthless. This is a simple, quiet way of admitting that going through the complexity of taking the security is a waste of time.

What people should be screaming about is a private company, the Fed, controlled by the banks that are in trouble, telling the Treasury (run by one of the bankers who caused the problems) to pay with taxpayer money, all the money they will loose with throwing money at the banks.

They really do want the dollar destroyed. If this goes through, watch the USD sink like a stone.

[Sys1]

FED looks to me like an old drunk guy trying to earn back his wife's pension he just lost at poker in the casino by gambling more on the daily horses race loto where you can earn a lot more than poker but you have almost no chance to win.
Tomorrow morning, he'll get back at home, broke. His wife will cry and shout at him about how crazy he is. As an answer, he'll beat her to death.

[RdSnt]

Ah, I found the government's "special purpose vehicle".

http://www.joe-ks.com/archives_aug2003/TruckDown2.jpg

[smallpoxgirl]

Dang. How do I get me one of them there unsecured Fed loans?