AEP: No Bernanke to save us next time

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Via Ambrose Evans-Pritchard:

Say your prayers. We no longer have a lender of last resort fully standing behind the global financial system.

The US Federal Reserve is prohibited by law from carrying out precisely those emergency actions that halted contagion and a worldwide collapse in October 2008.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.