The Federal Reserve System can create UNLIMITED amounts of new money. It can and have bailed out:
The Mexican Government
LTCM
Fannie Mae
Freddie Mac
Feel free to add to the list
The systems original prime directive is to prevent runs on the big NY banks who created it. It has now evolved into something that transfers all manners of financial risk (and burden of repayment) to the taxpayers for generations to come. Of course all of this occurs with our elected officials and our own blessing.
Just listen to the crowd cheer as the word bail out is mentioned.
