Fed addressing the liquidity crunch is bullish for the economy. Bullish economy = stronger dollar, less likelihood of sustained low interest rates.
So Bernanke, is his ultimate wisdom, has discovered a way to solve the liquidity crunch, as the market suggest. Is this a correct assumption?
Hardly... simply "monetizing illiquid/bad paper/debt". He says, "It's a temporary loan"... I'm betting it becomes permanent. $USD will crash, foreign bond holders will panic and dump, interest rates will sky... when the world acknowledges what this really is.
excellent point, and one that few are addressing. the way my screen looks lateley, there are two types of trading sessions. inflation sessions where everything goes up, or non-inflation sessions where everything goes down. today was majorly the former.
Fed is trading buckets of T-Bills for buckets of poop. Got to be good for everybody who really matters.
Well dollars down hard tonight, so I guess people were masterbating just a little too hard on the news.
Well, if you blinked you would have missed that bounce in the dollar. I guess people finally realized that Bernanke's bailout plan is bearish for the dollar after all. Go figure.
we're already in a recession. deep interest rate cuts that will only make things worse are the only reason why stocks haven't dropped even more.