The Fed makes $200B in loans to US banks, secured by sub-prime debt: The Big Picture
This effectively transfers $200B (not counting similar loans in the recent past as well as future ones that are undoubtedly on the way) of worthless debt on the shoulders of the US government.
Grover Norquist infamously stated, "My goal is to cut government in half in twenty-five years, to get it down to the size where we can drown it in the bathtub."
Old Grover must be already printing the next "Mission Accomplished!" banner.
Who knew that he wanted to include world financial markets as well?
BBC: Northern Rock Get Bailout
IHT: IKB Bailout
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