Hey, I would have agreed until this morning. I had lost just about all faith in Bernanke until this announcement. Look, I know it's hard to talk in terms of weeks or months to a bunch of people that can't see past a week in the markets, but this will be good. Look, this latest credit crisis isn't anywhere near the real crisis' of post 911 and the savings and loan crisis. This latest action will see some results, but there's only so much any central bank can do to help the situation without lighting the brush fire of inflation. You can't hold a gun to a banker's head and make him do loans no matter how cheap the money or how long the lines outside the bank. Give it a chance and some time. There will be more cheap money available to the banks, not the general supply. This is about as pinpoint as you can get. Yes, it should have happened last quarter, but as some say it takes some time to coordinate. Now all we need is for the banks that need the supply to step up and get it, unlike how they refuse to use the discount window (window = useless, pure symbolic). Good Luck!
I haven't read the mechanics of this so called multi bank agreement but it looks like it's aim at hammering LIBOR or at least telling the specs there's a new player in town not more liquidity...more devaluation...
Thats a good point. Also, it takes the banks out of the interbank market somewhat, so it provides an alternative if you will. I note the BOJ wasn't included.
The Fed is so focused on manipulating the market's reaction, it really is pathetic. The futures rallied some last night when Steve Leisman came on the end of Fast Money with the message from an un-named senior Fed official that they had something in the works. Now today they are using the same CNBC-hamhead to say today's (big bone) action is in no way reacting to the market's reaction; but instead it has been in the works for weeks. I thought yesterday was ridiculous enough given Bernanke only recently signaled the Fed was prepared to move aggressively; then he followed it up with only a quarter-point cut in the discount rate, same w FF-rate and a pathetic, milk-toast statement. Now they are back-pedaling from their back-pedaling - What a joke.
the Fed action today stinks of a trial run at a world monetary reserve bank intended to kill all the currency gunners that can destabilize economies or governments.... Somebody has figured out that Iran-Russia-UAE-Sadui's of the world could put the hose to these big western banks and their monopolies.... some kind of organization will emerge to offset the middle east sov. funds and the power they can throw around..... something had to happen since dollar pegs are essentially a thing of the past.......... whether all this is good or bad is a different phone call...........
Eliminate all currencies and the bankers can give us a one world currency (backed by gold). Their wet dream come true.
Have you read any of his books? He's clueless. His cluelessness was the reason he was picked. He's the fall guy.
I think the belly bitching was all the big money was short at the close yesterday and somebody leaked or found out after hours about this half hatched Fed plan to thaw out the European banks... so the sure fire short side found itself in the deep end on the open so OK there will be these "auctions" to lend at 3% (not really an auction, akin to pigs having to take turns in the mud slop) so the the Europers can they lend it out at 4+ or what ever... a carry trade gift wrapped by Ben and those holding soon to be devalued dollars..... no wonder oil was up 4... that's where this auction money is headed... an opinion of course..... and I could be wrong