by David Kranzler
Investment Research Dynamics
Like a Mafia Don protecting his “family,” the Fed is implementing another layer of “protection” from collapse for the Too Big To Fail Banks. This latest deal will prevent bank counter-parties from pulling collateral from a collapsing bank. The installation of this law is a warning signal that the global banking system is barreling toward another devastating financial collapse.
The cover story for this scheme is that it will prevent another “Lehman” event from taking down the entire financial system. But it wasn’t Lehman, per se, that caused the 2008 collapse. Bear Stearns lit the fuse, Lehman was selectively thrown into the explosives mix and AIG/Goldman sprayed napalm into the explosion.