Could the last resort be that the FED becomes the ultimate direct lender???

[usctrojanman29_IHB]

With the bailout bill not passing earlier today and the credit markets tightening up by the day, could we get to the dire point where the FED will become a direct lender to individuals and corporations??? If it did, the FED would really be the lender of last resort.

 

[no_vaseline_IHB]

I'm with Steve Leisman on this one.

http://www.cnbc.com/id/26948156

The Bank Club

Liesman says he thinks the Federal Reserve is trying to create a club of elite banks. From what he can tell the guys in the club are JP Morgan [JPM 41.00 -7.24 (-15.01%) ], Bank of America [BAC 30.25 -6.45 (-17.57%) ], Citigroup [C 17.75 -2.40 (-11.91%) ], Goldman Sachs [GS 120.70 -17.29 (-12.53%) ] and Morgan Stanley [MS 20.99 -3.76 (-15.19%) ]. "I think those are five institutions the Fed will liquefy to the bitter end and will not let fail. That’s the line the Fed is drawing around the financial system."

If you're "In Da Club" you get backstopped. If your not? Via con Dios senor.

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