Tuesday, May 13, 2008

Don't fight the Fed.

Told ya. From today Tuesday 5/13/2008:

``A central bank that is too quick to act as a liquidity
provider of last resort risks inducing moral hazard,'' Bernanke

The belief that the Fed is always standing by would give
``financial institutions and their creditors less incentive to
pursue suitable strategies for managing liquidity risk and more
incentive to take such risks.''


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