Lifted in toto from Across The Curve:
First runner-up, Bloomberg via Infectious Greed*:
The Federal Reserve has expanded the type of collateral it will lend against at the Primary Dealer Lending Facility.
Separately, I was watching CNBC and they are reporting that AIG is looking for a bridge loan from the Fed.
CNBC also reports that the Fed forced Merrill to put itself up for sale.
THIS WHOLE THING IS FINANCIAL SCIENCE FICTION.
*Who's next post asks "Why Would BofA Buy Merrill?"
The raptors test the fence for weak spots. The speculators think the authorities will blink, and the authorities think the speculators will run out of funds.
-- Vincent Reinhart, former director of the Federal Reserve Board's Division of Monetary Affairs (via Bloomberg)