This is the problem with letting a private banking cartel control your country's money supply "Note that this is an intentional drain of "slosh", or liquidity, from the banking system. $125 billion in the last four days drained? You wouldn't be trying to intentionally cause a bank failure or two to bolster your call for the $700 billion "bailout" plan, or perhaps intentionally lock the short-term credit markets, would you Ben? If the market has a liquidity crisis, why would you be intentionally draining reserves from the banking system? Don't you think you ought to explain that to Congress?" http://market-ticker.denninger.net/archives/2008/09.html
Every Pro Veteran trader knows that this whole fake crises is all about economic terrorism and extortion. You have to be a complete piker to believe Paulson/Bernanke on this issue.
You are an idiot. It's called "reverse-repos". They are trying to inject better collateral into the system because everyone wants T-Bills right now. Duh.
Landis: The stupidity on this board is simply breath taking. Don't beat your head against the wall. Yes guy's the Fed is using open market operations to get folks out of Treasuries and into more beleaguered issues. Allowing the T-Bill market to trade unmolested through par is not exactly constructive to the goal of increased systematic liquidity. P.S. I woulda been much longer this morning except it was SO obvious I was afraid it was a trap. Who were the nutty sellers down there??
Thanks Pabst. This website could be incredibly valuable, but Baron continues to allow it to go down the tubes . . . What a shame.
On a slightly different tack. What importance (if any ) do you attach to the wheeze that the Chinese are still buying dollars in large amounts but in less obvious transactions. regards f9
Do yourself a favor and educate yourself by reading Randal Forsythe's column "Current Yield" in this week's Barron's. The Fed's balance sheet just topped $1 TRILLION DOLLARS for the first time ever. They are hardly being restrictive, by any measure. In fact, they expanded their balance sheet by $218.6 BILLION in the week ended Wednesday, alone! Get a clue.