You've heard me say ..."Too big to fail." That is what we have here and as much as I hate what's happening ... all of the Fed actions are starting make sense. They obviously know more about how bad things are than I ... it just ticks me off.
J.P. Morgan will borrow funds from the Fed's discount window and re-lend them to Bear Stearns for 28 days, with the Fed bearing the risk of any losses. The size isn't predetermined, but is limited by the available collateral.
The bold is mine ... and they are referring to you the taxpayer! These folks get themselves into these fixes and need Big Brother to bail them out.
