Pumpdump the dow has gained nearly 2000 points and the fed has kept the rates stable at 5.25 in that entire period. The market does just fine without the fed interfering.
Bernanke is doing what he's being paid to do: stabilize the situation when the markets freeze up. When banks stopped lending to each other, both here and in Europe - a worldwide situation, I remind you - he had to do his job, the primary job of the Federal Reserve, which is to provide reserves for the banks when they can't get those reserves on the open market. A quick primer for those who may not know: what goes on in the Fed Funds market is the buying and selling of money between banks all day long, this trading done around the reserve position that the bank has to hold according to Fed rules. Once every two weeks, on a Wednesday, they have to report their reserves for the prior two weeks, and the number has to be close to what is mandated. Money is traded back and forth between banks because out in the real world deposits are taken and loans are made, and so money goes in and out at levels that are, short term, unpredictable. So, money goes around the various banks as they position themselves to get their reserves in shape for reporting. That interbank market is what froze up, both here and in Europe, where I'm sure the rules are somewhat different from what I just described, but the end goal is the same. The reason the Fed dropped the penalty somewhat on the discount rate was to prevent some bank from hesitating to go to the window when they needed to, and this hesitation causing a major problem, which in this climate of fear, would have snowballed out of control and possibly caused a global collapse. If that's what you want, well, you're scum, pure and simple. Otherwise, be happy Bernanke did what he's paid to do.
Everyone should put the villiage idiot on ignore. It really cleans out the foul smells that emit from his posts. There is an actual discussion of the markets and events that make them move. If we all band together, at some point this ass clown can find his way to yahoo where he belongs.
Rising, yes, but it's been a pretty anemic rally so far. If volume doesn't come in soon we'll test Thursday's low shortly. I'd much prefer a rising market but I think it's too early to make the call.
I don't think they're looking at stocks. Well, maybe peripherally, but its not the main show in town.
Looks like the market has stabilized, their is no need for fed intervention. TheY should not have cut the discount rate, and they should not add money to the system. LEAVE THE FRIGGIN MARKET ALONE!!!!!!!!!!!!!!!
Dudes, they're cutting rates. I don't see why there's even a discussion. Do you guys even look at the Treasury Markets?
How long has the treasury market been predicting a rate cut? running up on a year. First it was the ten year, now the 90 day is all the rage. The data simple does not warrant a cut. The market is trying to force the fedS hand, this ain't Greenspan anymore. The market is still positive for the year, give me a break!
The strong GDP number & the absence of any new subprime lending stories lessens the chance of a cut. Although I'm long the market doesn't need a cut and I doubt the fed will cut.