The Fed Opens Its Coffers Wide

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The Fed Opens Its Coffers Wide

When the going gets tough, the Fed lends, and the loans it makes become assets on its balance sheet. Total assets have doubled since the credit crunch began in August 2007, and Goldman Sachs says they could reach $5 trillion if the Fed lends as heavily as the Bank of Japan did during Japan's credit crisis in the 1990s and early 2000s.