No Falling Over?

clipped from tigerhawk.blogspot.com And the Fed just told the markets -- I suppose shorts in particular -- that it will not allow a major financial institution to fall over for lack of an ability to fund its assets, or alternatively force the sale of those assets at distressed prices. The Fed has just executed a nicely calibrated maneuver intended to install confidence in our lending institutions while electing not to bail out those hedge funds who may have taken excessive and imprudent risk. They will continue to have to sell assets to meet August 15th redemption notices for September 30th -- runs on their "bank" as it were. It has thus protected the markets from an even greater avalanche of assets -- mortgage assets in this case -- hitting the market and driving down prices from banks who have access to t he Fed discount window.