Movements in the libor rate suggest high demand for liquidity, hence the feds liquidity injections the past week. That market has certainly not seized up.
Yes. At first, thought he is a pussy and give everything Wall Street demand. Guess after all, he is looking out for the smaller guys too. Another shorting opportunity.
This appears to be a symbolic gesture on the part of the fed that will do more to further damage their reputation than to ease concerns in the marketplace over the short- to medium-term. To be sure, the larger institutions will reap the rewards of this move at the expense of the little guy, investing his or her savings in the market. Perhaps Joe Investor's confidence received a boost this morning so he doubled up on the losing bets he made a couple weeks ago. The larger firms/funds, on the other hand, which are largely, if not fully, responsible for the problems that presently exist, will take advantage of Joe Investor's naiveté by selling into the rally. And, of course, the real pain has yet to arrive. Meanwhile, the fed confirms that when the big money managers and financial institutions get overly greedy, assuming unchecked risk that places all of us in financial peril, they needn't worry -- the fed will save them. After all, it's not a fair marketplace for which the fed strives, but rather a skewed marketplace that assures the safety and profits of larger corporations while leaving the rest of us to bear the toll. So it goes.
There was a run of CFC's banking unit, that would have spread and was probably the stimulus. However all the idiot Schoolmaster has done is tell the rest of the world that the problem is every bit as bad as their worst estimates. Short US markets and currency. How well did Greenseniles unsceduled rate cut save the markets in '99?
Thats the role of the central bank, protect the large players, squash the little ones. I will never forget Greenspan move at the end of the last easing cycle when he encouraged ARMs.
Why do I get the feeling that the Fed is dispensing cough suppressants to a patient with ambulatory pneumonia.