Following the recent fall of the government-subsidized financial industry, the Fed's claim that it wouldn't bail out Wall Street has been short-lived.
NEW YORK: Global markets plummeted on Monday after investment bank Lehman Brothers filed for bankruptcy protection, rival Merrill Lynch agreed to be taken over and the Federal Reserve threw a life line to the battered financial industry.
As a deepening crisis took new, bigger victims, The U.S. Federal Reserve said for the first time it would accept stocks in exchange for cash loans and 10 of the world's top banks agreed to establish a $70 billion (39 billion pound) emergency fund, with any one of them able to tap up to a third of that.
As always, the government (and the Fed is a big part of it) will willingly continue to process worthless fiat called "money" and disperse loans in its guise. Message to Alan Greenspan and Ben Bernanke: the problem has nothing to do with liquidity but has everything to do with colossal malinvestments that need to be liquidated.