tag:blogger.com,1999:blog-3782644139927778760.post-35507950760957617172007-12-13T11:35:00.000-05:002007-12-13T11:35:00.000-05:002007-12-13T11:35:00.000-05:00Anonymous:<BR/>What I meant by "unsecured loans" was that if the value of collateral is significantly below of what you Fed says it is, a part of the loan is unsecured (could be a large part).<BR/>I wasn't aware that all of the term facility collateral would be applicable to the discount window though. It still doesn't change the argument - if anyone was brave enough to use discount window, due to the nature of the collateral the loan would be (effectively) unsecured. So it could just be that Fed was trying the trick earlier, but had no bites (because of the stigma associated with discount window - although I believe people will be watching closely who will take up the auctoion and what they will bid).vladenoreply@blogger.com