Is something up with the Fed today?

blackchip · Sep 27, 2007

Why were they in open market FOUR times today?

And why so many mortgage backed?

Another meltdown?

http://www.newyorkfed.org/markets/omo/dmm/temp.cfm?SHOWMORE=TRUE

Enfinity · Sep 27, 2007

My thoughts are that if there was a meltdown on the brink we would see volatility showing up in some area(s) of the market. The 23a capital exemptions seem to have **temporarily** relieved the banks of this pain.

nevadan · Sep 27, 2007

This article may address why this activity occurred

quote from link
...On Thursday, September 27th, the Federal Reserve entered into $6 billion in 14 day repos and $20 in 7 day repos. It also rolled over two small, shorter-term repos from earlier this week that will roll over again within 4 days. As of Thursday's actions, the total amount of Fed repurchases outstanding is $45 billion. This is about the total quantity of reserves in the U.S. banking system (which includes these repo proceeds). In short, these repos are not injections of new liquidity, but a continuous rollover that finances a stable level of reserves, at a level that is negligible in relation to $6.3 trillion in total bank loans....]
More...

http://hussmanfunds.com/wmc/wmc070924.htm

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Is something up with the Fed today?

blackchip

Enfinity

nevadan