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Fed Steals the Plaque from The Statue of Liberty

Posted By Barry Ritholtz On March 27, 2008 @ 7:00 pm In Credit,Derivatives,Federal Reserve | Comments Disabled

Statueofliberty_2 [1]
Interesting conversation with my pal Dan about the low low standards for collateral for the Fed’s TSLF, and for JPMorgan’s Bear Stearns purchase:

I suggested that the Fed grabbed the plaque at the Statue of Liberty, and moved it to the Federal Reserve. They took this inscription:

"Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore."

-The Statue of Liberty [2]

>


And turned it into this:

Federalreserve_fedreservebank_2 [3]

"Give me your tired paper, your poorly performing mortgages, your huddled derivatives yearning to trade free, the wretched refuse of your balance sheets."

-The Federal Reserve [4]

>

If you have a better explanation, I am all ears . .  .


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URL to article: http://www.ritholtz.com/blog/2008/03/fed-steals-the-plaque-from-the-statue-of-liberty/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/photos/uncategorized/2008/03/27/statueofliberty_2.jpg

[2] The Statue of Liberty: http://www.statueofliberty.org/Statue_History.html

[3] Image: http://bigpicture.typepad.com/photos/uncategorized/2008/03/27/federalreserve_fedreservebank_2.jpg

[4] The Federal Reserve: http://www.federalreserve.gov/

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