FakeBen says: "This crisis was caused by excessive lending. The Fed's answer: more lending. They really seem intent on causing inflation and destroying the currency."

NEW YORK (Reuters) - The Federal Reserve is looking at contingency plans for bolstering its lending power in case recent measures it has taken to unfreeze the credit markets fail, the Wall Street Journal reported on Wednesday.

Nothing is imminent, since the Federal Reserve still has room on its balance sheet for additional lending, the report said, adding that the internal discussions were part of efforts to identify options in case the credit crunch got worse.

http://www.reuters.com/article/ousiv/idUSN0940890420080409 [1]