As an update to
this post, Ben Bernanke has sent a
letter to the Senate Banking Committee defending himself against news reports from last week. Some of the defense deals with various double counting in the reports, which seemed obvious. Here is an interesting part at the end:
Most of the Federal Reserve's lending facilities were priced at a penalty over normal market rates ...
The
Bloomberg story says:
During the crisis, Fed loans were among the cheapest around, with funding available for as low as 0.01 percent in December 2008...
Of course, those two statements can both be true.
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