FT.com / In depth - US banks borrow $50bn via new Fed facility Quote:
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US banks have been quietly borrowing massive amounts of money from the Federal Reserve in recent weeks by using a new measure the Fed introduced two months ago to help ease the credit crunch.
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Simply another gimmick the government is using to delay the collapse of a system based on the increase of spending money we don't have. How large can the deficits get, and the national debt rise to before it becomes apparent to all that default is inevitable??
"The TAF . . . allows the banks to borrow money against all sort of dodgy collateral,” says Christopher Wood, analyst at CLSA. “The banks are increasingly giving the Fed the garbage collateral nobody else wants to take . . . [this] suggests a perilous condition for America’s banking system.”