I would like everyones thoughts on this passage from Woodwards book on AG:
"In addition, there was an ambiguous provision in Section 13 of the Federal Reserve Act, the lawyers told Greenspan, that could allow the Fed, with the agreement of five out of seven members of its board, to loan to institutions - brokerage houses and the like - other than banks. Greenspan was prepared to go further over the line. The Fed might loan money, but only if those institutions agreed to do what the Fed wanted them to do. He was prepared to make deals. It wasn't legal, but he was willing to do it, if necessary. There was that much at stake. At that moment, his job was to do almost anything to keep the system righted, even the previously inconceivable."
If this is the case, it seems unlikely that AG will allow us to enter a deflationary spiral without first trying EVERY way to stop it.
Do you agree he will do so, and what steps will he use and what can we expect to see; what will be the tell?
thanks! |
