You are highly mistaken. If anything, the FED has been incredibly slow to address the credit crunch. They have been extremely sensitive to INFLATION. That is why they have chosen to offer up these "sexy" little auctions ( repos ) for the commercial banks, at rates just a touch below the discount rate. They have NOT been aggressively lowering rates, nor have they been injecting money PERMANENTLY into the system. If they were, you would be seeing "coupon passes" executed during their open market operations! And you say that Bernanke has been caving in??? You are a joke. Quit your whining about the market. Time to go back to school and retake Econ 101A "Money & Capital Markets"
Well Don that's the good part, the making a lot of money that is. Now for the bad, you're going to need a bunch more of those to mean anything. Beaver pelts just ain't what they used to be. Good Trading to you!
Your dollars are essentially worthless! Welcome to the biggest experiment in hyperinflation that will ever be conducted. Inflation fighter my nuts.
As i said before lowering the rates can only do so much, lowering them as much as they can is only going to create bubbles in other asset classes. The reason why this market and economy is doing what it is doing today is because of the rates being where they were just 5-6 years ago. The credit bubble was formed because of the easy money that was lent, they are trying to hard to create excess liquidity in a market that is already worn out.
All that you say is true as long as the underlying agency retains confidence. The real question is whether or not the Fed has lost its credibility or not. Agreed about your economic reasoning, but rate cuts ain't going to help when all confidence is gone. How are those Jap rate cuts doing? First real estate takes it on the chin. Next the consumer takes it up the ass and loses confidence. Last, the capital market participants lose all faith and walk away. The only thing keeping me in this market is the exchange rates on the dollar. Owning companies is better than owning dollars right now, but if confidence is gone, nothing is going to be good. Good Luck!
You don't need the Fed. They have no backbone, they yield to Wall Street everytime, at least since Greenspan came to the throne. Everyone is looking for a rally to sell off their holdings because rate cuts aren't going to save us here. Only an idiot would believe so.
Hmm. And here I thought that they were complicit due to absurdly mismanaged monetary policy that helped create the loose environment for the crunch (and corruption) that followed.
Will be a huge win for bears if after this monkey stops talking, we finish at session lows. I think a flat close when all said and done.
They have been injecting plenty of money into the system over the last 6 months, one of the biggest was in AUGUST 2007, it helped the markets from falling when they should have been falling. They have been floating these markets for the last 12-18 months. By injecting money it only prolongs this kind of market action, it creates uncertainty and volatility. Why keep the market guessing, just let it do its own thing without anyone trying to save it.