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There are a number of tools of policy
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directed at the maintenance of financial stability.
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One has received overwhelming emphasis to date
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and it is entirely appropriate,
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but I would suggest presumptively insufficient.
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That is, the Fed, through a dizzying array of
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new facilities and ad hoc actions,
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has made clear that it stands ready against good collateral
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to provide liquidity to financial institutions.
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Now go back to the calculations that I went through a moment ago.
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I emphasized the loss of capital
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and I represented the desired reduction in levels of leverage