A test of US Capitalism...

Quote from trader99:

The very same thing is happening to these i-banks and hedge funds. But instead of liquidation, they are asking the Fed to let them borrow even MORE money so they don't have to get out of their positions at a loss HOPING(key word here is HOPING) that the markets will turn around and let them get out at a smaller loss or god willing breakeven/small profit.
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You're failing to understand that the key players are not hoping, they are ordering. A small loss does not matter, because all the profits have been made during the boom. What's really needed is a smooth transition into the next asset(s).

Think about, this has a pattern every 5-7 years. 1987, LTCM, 2000, now this. I mean really, is anyone that surprised that there are liquidity injections happening now?
 
people this is very scary there are no bids in this market rumor had it on the floor of the cme that the fed was going to cut 50bps


greenspan left just in time
 
Of course they will get bailed out, they are all on the same team. We can only hope Ron Paul gets elected to restore the way government is supposed to be run.
 
In case anyone hasnt figured it out yet. Unless the US plans on ceasing to exist and the world plunges into complete armageddon the fed will cut rates and pump more money in. Its not a question of economics its a question wether the world financial system lives or dies. Yes, CBs could fail, but that isnt likely considering they have no limit to the amount of money they can print.


Inflate or die!
 
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