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To: nicmarlo
...it is not authorized to make direct payments to “prop up” a failing organization...

It did not. It made a loan.

35 posted on 03/29/2008 3:21:34 PM PDT by Petronski (Nice job, Hillary. Now go home and get your shine box.)
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To: Petronski; nicmarlo
It made a loan.

It made a LINO. The Fed created an LLC, hired someone to run it and "loaned" it #30B to buy MBS. It is a fantasy to think of this as the Fed investing in their new LLC or a bailout for anyone or handout to JPM. It is simply a purchase of mortgage securities by the Fed, part of the credit bust predicted by Mises. Before there were people holding bad debt, now those people are holding cash. The Fed had the treasury print up that cash and they now "hold" the bad debt which they will sit on forever.

45 posted on 03/29/2008 3:42:35 PM PDT by palmer
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