Several media outlets reported that the Federal Reserve Bank announced that on Wednesday March 26, major investment banks and broker dealers borrowed $37 billion through the discount window. The Fed opened the discount window to this new and wider group of participants 10 days earlier along with brokering the JP Morgan purchase of Bear Stearns.
Perhaps if they opened the window earlier, BS would have been able to climb through it.
That so many firms jumped at the cheep loans is not a good sign. Either the firms are near a financial calamity or they are lining up for free government cheese, as it were. And what is the Fed (we) getting as collateral for these low interest loans? Worthless subprime paper.
