A direct transfer of mortgage and mortgage-backed securities of questionable pedigree from an investment bank to the Federal Reserve seems to test the time-honored central bank mantra in times of crisis: lend freely at high rates against good collateral. It tests it to the point of no return.
~ Paul Volcker, speech before the Economic Club of New York, April 8, 2008
(Quote cited in "Trust in Central Banks Passes Point of No Return," Bloomberg, April 24, 2008, by Mark Gilbert)
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