the big d word, page-9

Reposted with correct article link.

We've already seen this happen and it wasn't the Fed!
For example, in my opinion major banks will not be allowed to go under. The Government will take them over and print paper to meet all their debts/derivative losses.

Feb. 18 (Bloomberg) -- Prime Minister Gordon Brown's government will introduce legislation today to nationalize
Northern Rock Plc after the Treasury rejected a private
rescue for the only U.K. bank to suffer a run on deposits in a century.

The Newcastle-based bank was suspended from trading in London today, and an independent panel will determine how to compensate shareholders. Chancellor of the Exchequer Alistair Darling will outline the emergency legislation in Parliament at 3:30 p.m...

Full article at http://www.bloomberg.com/apps/news?pid=20601087&sid=aY7zWwooJAuI&refer=home