Monday, May 5, 2008

First Bear Stearns, now student loans

I wonder if Bernanke will be able to resist Congressional pressure to open the proverbial cookie jar:
There is ``a potential crisis in the student-loan market'' requiring ``similar bold action,'' Chairman Christopher Dodd of Connecticut and six other Democrats wrote Bernanke. They want the Fed to swap Treasury notes for bonds backed by student loans. In a separate letter, Pennsylvania Democratic Representative Paul Kanjorski and 31 House members said they want Bernanke to channel money directly to education-finance firms.

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