Comments on: Dear Draghi: Time to buy bank bonds Mon, 26 Sep 2016 03:26:00 +0000 hourly 1 By: EdMartin Fri, 12 Feb 2016 23:02:26 +0000 on the contrary – read Bagehot’s advice

by all means lend freely to banks at a time of actual or incipient crisis;

only lend to first class banks,

only lend at a rate of interest that reflects the risk involved,

and only lend against proper security – eg wheat and iron (that is the staples of life and economic activity)

and let bad banks go down