My week off allowed plenty of time to think about the future of this credit crisis from a much broader perspective. Driving though Vermont’s scenic Green Mountains and New Hampshire’s White Mountains, we had plenty of time to listen to audio books. One in particular – David McCullough’s excellent book 1776 – offered perspective on how far the U.S. has strayed from its founding principles…
September 19th, 2008 | Dan Amoss | 4 comments | ContinuedAll Posts Tagged With: "credit crisis"
Fed’s Latest Line of Attack on the Credit Crisis is Inflationary
Bear Stearns was on the receiving end of an indirect loan from the Federal Reserve on Friday. Though Bear is the fifth-largest securities firm in the U.S. (and the ninth largest bank in the world), it’s an investment bank, not a commercial lender. The Fed can’t loan directly to investment banks, so the loan had to be routed through a willing third-party, in this case JP Morgan. It turns out that last week’s big US$200 billion loan facility was probably set up to make this three-way transaction possible.
March 17th, 2008 | Dan Denning | 4 comments | Continued
