Section 13(3), Rule 1830, Rule 308, and Naivete
The news headlines have been packed with economic Gloom and Doom, in recent weeks. To many observers, things seem to be spinning out of control–with collapsing credit markets, massive bailouts, emergency cash infusions, and taxpayer “stimulus” checks descending like Manna from Heaven. Given all this news, it is timely to discuss three rules: Section 13(3), Rule 1830, and Rule 308. Section 13(3) Section 13(3) of the Federal Reserve Act (of 1932) empowers the Federal Reserve banking cartel the power to lend to any corporation or to any individual using any collateral. The only proviso is that the Fed must declare …