I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. —Thomas Jefferson, 1802
The "Term Auction Facility" is one of the most assbackward decisions to have happened in banking. Allowing banks to be anonymous in borrowing directly from the discount window and hide thier risk is just plain stupid.
Banks would not lend to other banks knowing the trouble on their balance sheets. But the U.S. Government didn't care. We offer loans with no questions asked.
Bernanke is a moron. Sooo scared of private bank failures and he is the one actually participating in the problem.