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d · 03-31-2008, 07:10 PM

Hussman suggest, but does not so clearly state, that the Fed acted outside of its authority in this situation; however, the authority seems clear under the Federal Reserve Act, section 13(3): "In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank"

03-31-2008, 07:10 PM	#8
d Thinks s/he gets paid by the post Join Date: Apr 2006 Posts: 1,457	Hussman suggest, but does not so clearly state, that the Fed acted outside of its authority in this situation; however, the authority seems clear under the Federal Reserve Act, section 13(3): "In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank"