There needs to be a halt to the "moral hazard" policy. The mind set of, "I can be reckless about risk and leverage, but when I get myself into a jam the Fed will be there to pull my bacon from the fire".... needs to stop. It's bad for all of us.
what jam? the markets have skied back and all is well. we're up 8% this year and the econ #'s look ok so why the hell would they cut? if they cut we deserve to crash 3000 pts for there manipulation
WASHINGTON (Thomson Financial) - The Federal Reserve Bank added 21 bln usd in liquidity to the banking system today in three separate repurchase agreements. Today's activity followed a 13.5 bln repurchase agreement, bringing the two-day total to 34.5 bln. Specifically, the Fed announced a 14-day 5 bln usd repo, a 7-day 11 bln usd repo, and a one-day 5 bln usd repo. ------- Based on this madness, maybe the Fed is positioning itself for no cut?
Very suspect math. The $13.5B repo yesterday was a one day loan. http://www.newyorkfed.org/markets/omo/dmm/temp.cfm
I wonder how many people would a "little" upset on a stand pat . We would probably get he coin phrase that goes something like "we are still parsing and adjusting the data." Akuma
After some consideration, I am joining the consensus here is recommending NO rate cut. This variable should be maintained as-is. Too much downside risk either way. It looks like a short strad, in my mind.