FED pumps the market again

Discussion in 'Trading' started by MrDODGE, Apr 17, 2008.

  1. Once again this shows the Fed is supporting the overall market. They are throwing around money like it is worthless.

    http://www.newyorkfed.org/markets/omo/dmm/temp.cfm

    Look at the last 25 injections.

    The Market: Tomorrow could be a potential down day
    Bernanke: Lets throw money into the market and stop it from falling
    The Market: Sounds good, BUY...BUY...BUY!!!!
    Bernanke: I have your back.. everything is alright
     
  2. You need to take a course in "Monetary Policy and Financial Markets".
    The data that you refer to for today's activity is for REPOS!

    Repos are NOT permanent injections of money into the monetary system. They are temporary repurchase agreements.

    This, is opposed to a permanent injection of money into the system . . . which would be executed via a "Coupon Pass".There is a BIG difference!

    In this case, there were three separate operations by the Fed involving 1-day, 7-day, and 14-day REPOS.

    Big deal.