Quote:
Originally Posted by Butterfly  Most central banks have a built-in rescue system, it's called the window discount rate, basically a "special discount" rate for banks to "borrow" reserves from central banks,
|
Thats what has been happening in the US, to the point that the FED has lent a sum greater than the sum held on deposit. See post 3. Yet still the problem intensifies.
The issue with the newly crocked German bank detailed above, is that the German authorities are now reduced to pleading to other private banks to help out. The ECB has already injected over 100BN Euros through its window, to little effect...