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Even after the half percent drop in the discount rate, it is still a half percent above the Fed Funds rate. The Fed is doing something it probably shouldn't be doing: (1) They are making discount loans of 30 days which can be renewed (They used to be for a day or maybe a few days.), and (2) the big bank borrowers are alleged to be using the money to prop up their brokerage houses (There is supposed to be a Chinese Wall between these. That was the original agreement when banks were allowed to have brokerages.).

Only depository financial institutions can receive Discount Window loans. Hedge Funds, for example, can't do this so if they start to fail, what does this mean for the rest of us peons?

So I don't know how this will all turn out, but I worry.

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