Thursday, December 1, 2011

The Fed, in the midst of this crisis

To quote the Bloomberg article:

On September 16, 2008, Morgan Stanley owed $21.5 billion to the Fed. The next day, that number doubled, to $40.5 billion. And eight working days later, on the 29th, the bank’s total borrowings from the Fed reached $107 billion. The Fed didn’t blink: it kept on lending, as much as it could, to any bank which needed the money, because, in a crisis, that’s its job.

Haters might think the Fed is part of the conspiracy, but, as a former Fed staffer, I have a different perspective. And this article sums up why we are lucky to have this model.

1 comment:

  1. Nice articles always attract the viewers. And your article is very attractive and informative. Keep it up and do post regularly please…