"Give me your tired, your poor,
Your huddled equities yearning to breathe free,
The wretched refuse of your asset backed security shore.
Send these, the worthess, tempest-tost to me,
I lift my lamp beside the golden door!"
(With apologies to E Lazarus and The New Colossus)

"We've re-established 'moral hazard'".

Or so says an unnamed person involved in the weekend picnic at the New York Fed’s offices in Manhattan, quoted in the Wall Street Journal.

For clarity, this means no taxpayers’ money for the bail out of the likes of Lehman. Seriously. Full stop. I mean it this time. You better quit it.

In separate - as in nothing to do with public bailing - developments on Sunday the Fed announced “enhancements to its existing liquidity facilities”. This includes, bar a decoding error, the acceptance of equity as collateral for Fed loans. Maybe even equity like AIG, ABK, WM and others of equal distinction.

Again, it is important to note that these “enhancements” ought not to be confused with, or discussed in the same breath as, the notion of moral hazard.

Can't you see the line in the sand?

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