What kind of reasoning is used in the following statement? because the crime-reduction policy i propose has worked successfully in new york, houston, and new orleans, we can be confident that it will work here as well.

Gif the public and community loses trust in banks it affects the entire u.s. financial system. in order to keep this type of financial contagion from happening, the fed makes as needed short-term emergency loans, by acting as the lender of last resort. guides and regulates private deposit insurance programs to cover insolvent bank losses. decreases the money supply as acting lender of last resort.