I like this excerpt from a letter just-disclosed from Fed chair Ben Bernanke to Congress. He is essentially saying that the Fed isn’t the lender of last resort in the economy, Congress is.
The Federal Reserve would be extremely reluctant to extend credit where Congress has actively considered providing assistance but, after due consideration, has decided not to act.
Funny he should say that, of course. That’s awfully close to my view of why Congress might reconsider investing in Chrysler given Cerberus’s unwillingness to act.