No institution is better equipped to further a fascist government than a central bank. The Fed is circumventing capital markets altogether as it makes more and more loans to favored recipients. The Fed will lend $540-600 billion to commercial paper issuers, directly and indirectly through money-market funds. Almost as big as the $700 billion bailout! “It will backstop only high-rated A1/P1 short-term debt.” Banks ordinarily do this via letters and lines of credit. The banking system is apparently dead. Who needs banks anyway when we have the Fed? Why not let market rates rise to 12-15 percent? That would end … Continue reading The Fed’s fascist move of the day