I agree. Now when you finally figure out that they still own their bad loans, despite any short term loan they get from the Fed, you'll see that they might still fail.
What part of moral hazard don't you understand, and isn't that what got us here?
Since the Fed is not giving them money, what part of "a loan is different than a purchase" don't you understand?
Seems kind of funny to ignore the Social Security funds when the existing ones are only the tip of the iceberg. 50 to 60 trillion in unfunded obligations. Run that at 4.7% . . .
Interest rates won’t be there for long though with that level of required spending by government.
If you are right and there was a real threat to the payments system recently, then we are all screwed, because what's happened so far in the unwind of this CDS/CDO/CMO leveraged unwind in trivial. Maybe the fed addressed a short-term liquidity shortage, but the real issue is and remains looming insolvency. I really hope that there was no threat to the payment system, because helicopter ben is going to have his work cut out for him.