Agree with you 100%, except for the part about being Wall Street's bus boy ... he acts a lot more like he's Wall Street's butt boy.
The fact that the BSC news was accompanied by the fed making these two moves blatantly tipped their hand: someone else is in trouble. They essentially moved the broker/dealer lending facility to 'effective immediately' (the TSLF won't deal til 3/27)...and also cut the discount. The combination means they are preparing for investors to run someone...probably a broker, so they are opening the window, and setting the banks up as an entourage. You might say, yeah but, that may just be because they sense a possible crash,..but they know better than that...the announcement of such a strategy will only serve to spark more panic. So it would be used only if absolutely needed. That combination, and it's implications, is why this sell-off is happening.
This is part of Bernackes imperative to promote 'stable and orderly markets'. Likely more cuts on Tuesday. Ben wants to spread cuts out to prevent large one time shocks that rattle confidence further. Don't know how much good its gonna do..
Obviously it hasn't worked so far. I'm sure Bernanke is looking at the futures falling and will probably do another panic cut of 75 bp because stock market is weak. I really don't think he can wait 1 day to make the rate cut, my goodness, even Greenspan never panicked this bad.
At this point I think the only thing that can stop this is a coordinated world wide lowering of interest rates and a buying of the dollar. I know, it sounds stupid.
That's right DETECTIVE! You tell them how to really put the US Economy into a Great Depression by RAISING RATES in order to stabilize the Dollar . . . Sounds like a wonderful plan! Moron.