Yes they are printing more, but how can I get some? Isn't the country awash in money, I have not seen any shortages.
Come on guys $41B when supposedly commercial credit lines are improving. Wall Street bankers are in full panic mode nothing like holding MCDOs that are being downgraded from sovergein (can you believe they rated CDOs as high as sovereign debt) +AAA rating to below junk. Hell I'd being looking to the FED and offering the MCDO crap as collateral......CITI may have $30B....talk about a house of cards ready to collapse. Some $1 money market funds may hemorrhage at this rate.
<i>"A New York Fed spokesman said it was the largest single day of operations since $50.35 billion was pumped into the system on Sept. 19, 2001, following the terror strikes on New York and Washington. He declined further comment."</i> That may explain why the S&P 500 was so poppy-choppy between 1030am and 330pm est. ER was a perfect downtrend, smooth as glass. ES painted a ragged tape until the final wash. Why such a colossal infusion today? What's under the hood of Citi, BOA and ilk?
Interesting of the $41B today over $23B was Mortgage backed.... this tells me the commercial credit market is on life support. Only one buyer left in town crazy enough to take MCDOs as collateral...the FED. I bet someone is burning the midnight oil tonight...the repos are 24hrs.....CITI will be selling assets tomo or going bust! http://www.newyorkfed.org/markets/omo/dmm/temp.cfm
The only reason is because it costs more dollars for the same share. Higher prices accross the board to give the illusion that things are appreciating. Same with real estate. They figure they can artificially keep prices high with more liquidity in the markets. M3 is a matter of national security, kept secure from you, the nation. p
wouldn't the fed aim to get the most bang for their buck in assisting these banks in terms of which days and times they perform these injections, since ultimately all their business units feed real-time into the overall health of the institution (credit derivatives, eq trading, futures trading, etc)? how do they ensure they're not conferring unfair momentary (but invaluable) advantages to the trading desks over the rest of the marketplace
they do not. Look at the owners of the federal reserve, not really american now are they? you can find it somewhere on the web. p
WASHINGTON - The Federal Reserve pumped $41 billion into the U.S. financial system Thursday, the largest cash infusion since September 2001, to help companies get through a credit crunch. Fed cuts a quarter and dumps 41 bill. into the system and the Dow chucks 362.... we be happy
it's probably a bit more complex than that.. wealth alliances cross all kinds of boundaries, national, ethnic, etc fwiw check out the demographics of a typical wall st trading floor. probably one of the most nationally and ethnically diverse work environments you'll ever see i'm getting at the question of whether liquidity injection inherently favors the trading businesses of the banks it seeks to accommodate over the rest of the market, taking place when their positions are under pressure, etc
Guess what ?? 41 Billion in NOT 42,500 OUT Net drain of 1.5 Billion on market today Check out my Fed REPO video on you tube about FED REPO http://www.youtube.com/profile?user=TradePilotPro