Transcripts of the monetary policymaking body of the Federal Reserve from 2002–2008.

But in some sense, just to follow up on this point, the limits are what is really important here because, as long as we don’t define some limits and we just say limited by TARP capital, well, that doesn’t really answer the question. As long as the markets act as if we or someone else is going to step in and rescue them from any more lending arrangements they happen to be facing, the incentives for the intermediary system to repair itself or to gradually adjust are going to be limited. I’m worried about the lack of definition about what constitutes a legitimate market or instrument or firm that we wouldn’t save.

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