Fed: Ben’s beneficence

The US stock market’s up, junk loans and bonds are posting big gains – and Ben Bernanke is acting like the financial crisis is getting worse. He’s got a good reason. Banks aren’t the ones bidding up stocks, loans and bonds. In fact, they still can’t find cheap funding. The Fed chief’s decision to allow them to exchange a broader range of collateral for treasury bonds in its ongoing auctions could help them secure some welcome cash. The announcement Friday came as a surprise. After all, the late...