Fed's one two punch

Discussion in 'Economics' started by travelingtrader, Jan 23, 2008.

  1. After seeing the wreckage in Asia and Europe, the Fed created a plan one and a plan two (backup plan) for saving the stock market on Monday night.

    Plan one was to save the stock market with a surprise rate cut.

    Mid day today that clearly wasn't working.

    So the Fed went on to plan two (backup plan) which was to buy massive amounts of stock index futures to force the market back up.

    Plan two was executed this afternoon and clearly worked, at least temporarily.

    Anyone agree with this analysis of what the Fed did the past two days?
  2. short covering.... and it likely didnt hurt that the Fed. floated a few bailout rumors

    instead of really insolvent...the banks are now sorta insolvent....
  3. Absolutely agree and what you forget to add - Goldman definitely was informed about those actions in advance so they made killing
    of course, all those money will be paid to their brilliant executives via bonuses
    shareholders won't get much
  4. mokwit


    Fed came out 1 week ahead of the meeting because the meeting was on 30th and the Chimp is giving his 'Disrepair of the Union speech on the 30th and didn't want to speak against a 1987 backdrop. Supported for the same reaon today. New shorts would cover and there is money form closet indexer mutual funds on the sidelines.

    Of course suggesting the markets are being rigged makes me a whining loser by ET's high school 'footbal coach is my hero' mindset, or maybe some people are naive.
  5. massive buying of treasury paper imho to provide cash to prop up everything else.....

    sub 2% t-bills....what a deal
  6. Good call on bushmaster's speech, forgot all about that.
  7. God the FED is retarded. It is ok, for the inflation to kill of the middle and lower class. :)

    What happened to a decent FED chairman? Volker was good. Greenspan was only good at his beginning. But then messed everything up.

    Bernanke....do not get me started. Kill the dollar, raise the inflation, kill the housing market, credit bubble, further increase the trading imbalance, should I keep on going.

    Jeez, what can we save the money into.
  8. mokwit


    Chimp speech is actually on 28th. My typo.

    It will start as always with "What they've told me to say today is...................."
  9. The financial and political elite's objective IS to homogenize the global masses into a singular underclass. They have engineered the credit bubble to organize the largest transfer of wealth in the history of man. The resulting destruction brings us one giant step closer to the realization of their new world order. I doubt that the unwinding of the global credit bubble is simply an "oops, my bad". This unwinding and the destruction it is leaving is very deliberate, very carefully conceived.


  10. You mean Bernanke is the bearded trader behind those musty green curtains?
    #10     Jan 23, 2008