Option Armaggedon: What Price Financial Stability?

To avoid another Lehman style bankruptcy, the Fed has basically guaranteed, well, the worldwide banking system. The problem is that an “unlimited guarantee requires unlimited access to financing.” No one, not even the Fed, has unlimited access to financing. The Fed only has unlimited access to a printing press. If the dollar loses all its value due to hyperinflation, it won’t be worth much to anyone as insurance against loss.