The Fed is now taking equities at the discount window? WTF?!?! Conservatives want live babies so they can raise them to be dead soldiers. - George Carlin
Discount window, alright. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
That means the Money Market Banks and Prime Borrowers no longer have financial standing to borrow based on their non-equity (i.e., Paper) assets.
The European Central Bank announced emergency steps to counter is financial turmoil in the wake of the crisis in the US banking system. It announced a special operation offering unlimited overnight liquidity to markets. Earlier, using language similar to that it has used previously used to signal possible intervention in financial markets, the Frankfurt-based institution said it "continues to closely monitor the conditions in the euro area money market". ... The Federal Reserve agreed to take equities as collateral for emergency loans for the first time ever, as the chances of a rate cut at its scheduled meeting this week grew according to interest rate futures trading.
Earlier, using language similar to that it has used previously used to signal possible intervention in financial markets, the Frankfurt-based institution said it "continues to closely monitor the conditions in the euro area money market".
...
The Federal Reserve agreed to take equities as collateral for emergency loans for the first time ever, as the chances of a rate cut at its scheduled meeting this week grew according to interest rate futures trading.
