[Toddsterpatriot]

With dollars.

Excellent!

where does the Fed get the dollars? (a) the Chinese or

Wrong. The Treasury gets money from the Chinese and other buyers of Treasury securities. The Fed does not.

or(b) “print” them by asking the Treasury for some.

The Fed does not ask the Treasury for dollars. The Fed does not print dollars by asking the Treasury. They can print more with no input or permission from the Treasury.

Either way, it bails out the naughty and has no stimulus effect!

It does add new money to the system. New money is a stimulus.

You don't really have a degree in economics, do you?

[April Lexington]

No. I majored in Ballet! Tell me how the Fed prints money without treasury input?

[slowhandluke]

It does add new money to the system. New money is a stimulus.

You don't really have a degree in economics, do you?

And just how many of those with economic degrees predicted the current trouble?

New money is a stimulus to what? Inflation? That's the point of view of the Monetarians, and I think the Austrians.