Will FED save this market

Discussion in 'Trading' started by balda, Aug 9, 2007.

  1. balda


    I am afraid to have a short position, because I think that the FED can have an emergency meeting and unexpectedly lower the rate.

    What could happen should the FED lower the rate?
  2. But if they cut.......it will still make no difference. You might get a serious rally, but it will fall apart.

    It's to late, the credit situation is far worse and right now, they want to head off deflation.

    We could very will have a crash in the coming months.

    The chips will fall where they may, not even the Fed can save the world.

  3. FED injected 24bil about 3X normal magnitude
    of overnight repos (unusually large).
    ECB injected 130Bil

    Sentiment indicators are at massive extreme lows.

    I wouldn't doubt Paulson has given China some advice as to how to diversify their 1 trillion in cur xchange assets.

    Don't discount a unexpected squeeze. My take is this is another way of them inconspicuously bailing out a lot of the financials. Why? When the financials and hedge funds are dumping their assets to meet calls on subprime related derivatives, the same banks are right there sopping them up with liquidity injections.
  4. balda


  5. no
  6. IF they cut..the velocity picks up on the downside
  7. how can home prices not crash if there is no loan availability?
  8. What scared me was this sentence

    Countrywide said it believes it has "adequate" near-term funding liquidity to combat the market environment, but that the situation "is rapidly evolving and the potential impact on the company is unknown."

    The above doesn't give me a lot of confidence in their future prospects.