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.



<a href="http://www.cnbc.com/id/26948156">http://www.cnbc.com/id/26948156</a>



<blockquote>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."</blockquote>


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





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