posted on Feb, 24 2009 @ 11:40 PM
So I was watching Bernanke on CNN today, and he mentioned something I don't understand. Maybe someone can explain it to me.
One of the congressmen questioned him about letting the zombie banks simply fail. Bernanke said that there were laws set in place which didn't allow
the United States Federal Reserve authority to close private businesses. This makes sense, because the government shouldn't have the ability to
forcibly bankrupt a company at will.
The part I don't understand is... wouldn't these humongous institutions have just failed on their own if the Fed didn't get involved? Now that
they've involved themselves with these banks, are they virtually invincible as long as the Fed exists? If these propped up banks fall, that's
considered a failure on the Fed's part, no?
[edit on 2.25.2009 by Avarus]