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Bernanke Invents a New Weapon

Do you know your TAF from your TSLF? Frankly, it doesn't matter if you don't. Think of Ben Bernanke as action hero: every time the credit markets seize up and threaten to bring down the US financial system, he pulls out a new weapon. First it was rate cuts, then it was the Term Auction Facility, now it's the Term Securities Lending Facility, or, as Paul Krugman calls it, "an attempt to give the market a REALLY BIG slap in the face".

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