So the policy remains the same. Bail out the biggest gamblers for their own stupidity. OK, I think I get it now.
The Federal Reserve said it is extending its emergency borrowing program to Wall Street firms and is taking other steps to ease a severe credit crunch that has hobbled the national economy.
The Fed said the program, where investment houses can tap the central bank for a quick source of cash, will now be available through Jan 30. Originally the program, started on March 17, was supposed to last until mid-September.
Another program, where investment firms can temporarily swap more risky investments for super-safe Treasury securities also will continue through Jan. 30, the Fed said.
And, it also will let commercial banks, in a separate program, be able to bid on cash loans that last longer—for 84 days, besides the 28-day loans now available.
