August 24, 2007 (LPAC) - The Federal Reserve Bank of New York has officially "affirmed its policy to consider accepting as collateral investment quality asset-backed commercial paper" (ABCP) for its discount window, according to Bloomberg today. Decorating the garbage with the silver wrapping of "investment grade" fools no one, as it has been widely exposed that the rating agencies have applied A1 ratings to ABCP which is re-packaged BBB- garbage from the sub-prime gutters.

In fact, this announcement confirms what Lyndon LaRouche said on Friday Aug. 17, when the Fed announced the lowering of the discount window rate, which (according to the media) was purely symbolic, since it is hardly ever used. LaRouche said this was BS, that powerful people were bankrupt and demanding this action. Sure enough, the holders of the billions (perhaps trillions) of ABC Paper (often referred to as Asset-Backed Crap Paper) are now dumping it on the Fed, which apparently will eat anything.