>>Like the S&L bailout the object is to cover the lenders not the borrowers. ANd there is a real danger you and I as taxpayers will pay for part of this. There already have been high placed voices calling for a government bailout.<<
|I would have put it this way.
Banks are charging each other high rates because they think rates are going up and their is a shortage of liquidity.
Normally a brokerage owned by a bank is limited in how much they can borrow from that bank - they have to borrow from other banks. The Fed is making an exception. That does not reach the level of a bailout, by the definition I use.
The screams for one are already starting.