The Editors’ Quote of the Day
“I told y’all yesterday that we have a government of the banks, by the banks, and for the banks, and today proved that in spades. Federal Reserve announced it is re-opening its Primary Dealer Credit Facility (PDCF) through which it created $8.6 trillion in the 2008 crisis. These bailouts follow the Garbage Can Principle, like the Reconstruction Finance Corporation in the 1990s Savings & Loan Crisis. There is a ton of bad debt, so where does the government hide it? They create a “garbage can” to hold it until the crisis passes. In 2008 the garbage can was the Federal …