This was written before this news came out.
Prescient.
“The theme here is simple enough: If and whenever the circumstances justify a major response, existing rules will be changed, altered, bent, or broken.”
http://www.chrismartenson.com/blog/dont-worry-theyll-just-change-rules/50568
We have entered an Age of Lawlessness.
Bailouts for them, major losses for all the rest of us. Period.
But big banks? They get a free pass to go along with free money
Free money? The TARP wasn't free. Neither are loans from the Fed.
I would absolutely love the opportunity to borrow money from the government at a low rate and lend it back to the government at a higher rate, but that program is not available to me.
Which program do you (or Chris) imagine allows a bank to do that?
Small, regional banks without access to unlimited and essentially free capital from the Fed are now forced to compete with big national banks that have been granted an unlimited backstop by the Fed.
Free capital from the Fed? I think he's a bit confused about what capital means.
Thanks and for those who don’t get it this is what it means
” the Fed has changed the rules and any losses by the Federal Reserve banks can be denoted as liabilities on THE TREASURY!”