I watch the ripples change their size
But never leave the stream
Of warm impermanence
And so the days float through my eyes
But still the days seem the same
And these children that you spit on
As they try to change their worlds
Are immune to your consultations
They're quite aware of what they're goin' through

Tuesday, March 18, 2008

I was so much dumber then, I'm smarter than that now

Todd Wheeler asked in comments a while back about if what the Fed is doing is somewhat like what they did for the Savings & Loan debacle of the late 80s. I said that I thought they just let the S&L's crash. I was wrong. They did let the S&Ls crash, but the Fed (with Congress) set up the Resolution Trust Corporation to help manage the assets the S&Ls had.

That is, if you had a loan through the S&Ls, the RTC could sell that loan to another bank instead of having the loan being called, or forgiven.

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