[Toddsterpatriot]

Why don’t you stop trying to BS on these threads.

Is that what you call it when I point out your errors?

Private equity groups are indeed allowed access to the discount window when they are affiliated with a member bank

Yes, only banks can borrow at the discount window. I'm glad I could point you in the right direction.

and most are because otherwise they would not be holding that worthless bank paper.

That's funny!

Banks have allowed hedge funds to buy their paper.

Allowed?

[Hostage]

You have a talent for displaying unadulterated ignorance. You are pointing nobody in the right direction. You think private equity is not a part of banks? Did you bother to read the thread article? Apparently not since the subject is the banks and their unregulated investing ventures. If you were fully knowledgeable rather than at most partially knowledgeable you would know that private equity hedge funds are affiliated with banks as their surrogates for hedging activities. Part of that activity was involving mortgage backed securities.

These hedge funds are permitted transactions with the Fed via authorizations with affiliate banks. So your claim about private equity not having access to the discount system is BS. They access the Fed the same as outsiders are authorized to access our bank accounts.

Yes banks allowed their hedge funds both to borrow funds and to buy the MBS that they underwrote and issued. The banks unloaded the subprime to preserve their own credit ratings and gambled that their hedge funds would yield a higher return.

We’re done here. You exhibit a sophomoric understanding of how the markets work. Further response is not needed.