Can someone please explain the logic behind today's events?

Quote from stock_trad3r:

because were still in a bull market which began on October of 2002. Unless the Spooz closes below 1252 we're still in a bull market.
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yah okay buddy.
 
Quote from The Kin:

The fed pumps $200 billion more into the system and the dollar soars! I can understand a rally in stocks. But how the hell does the dollar go up? Why the hell would anyone trade in their currency for a USD dollar bill. What can it buy -- outside of a McDonalds double cheeseburger.

I'm so terribly confused right now. The fed has essentially discovered a way to make wealth out of thin air: just announce a doubling of the TAF! Fed gives banks another $200 billion and dollar goes up. IT MAKES NO FUCKING SENSE E&$%SRAY*UIGFIBOJPKLSDKJOIUD
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Fed addressing the liquidity crunch is bullish for the economy. Bullish economy = stronger dollar, less likelihood of sustained low interest rates.
 
Quote from Cutten:

Fed addressing the liquidity crunch is bullish for the economy. Bullish economy = stronger dollar, less likelihood of sustained low interest rates.
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So Bernanke, is his ultimate wisdom, has discovered a way to solve the liquidity crunch, as the market suggest. Is this a correct assumption?
 
Quote from The Kin:

"... If this voodoo Fed magic works, Ben Bernanke is going to go down as the greatest economist in U.S. History.
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Hardly... simply "monetizing illiquid/bad paper/debt". He says, "It's a temporary loan"... I'm betting it becomes permanent.

$USD will crash, foreign bond holders will panic and dump, interest rates will sky... when the world acknowledges what this really is. :mad:
 
Quote from The Kin:

The fed pumps $200 billion more into the system and the dollar soars! I can understand a rally in stocks. But how the hell does the dollar go up? Why the hell would anyone trade in their currency for a USD dollar bill. What can it buy -- outside of a McDonalds double cheeseburger.

I'm so terribly confused right now. The fed has essentially discovered a way to make wealth out of thin air: just announce a doubling of the TAF! Fed gives banks another $200 billion and dollar goes up. IT MAKES NO FUCKING SENSE E&$%SRAY*UIGFIBOJPKLSDKJOIUD
More...
You messed up when you titled this thread by including the word, LOGIC!

:D
 
excellent point, and one that few are addressing. the way my screen looks lateley, there are two types of trading sessions. inflation sessions where everything goes up, or non-inflation sessions where everything goes down. today was majorly the former.


Quote from The Kin:

Well shit if it's that easy. Set rates where they need to be to flight inflation and do TAF auctions as needed.

C'mon, this has to got to be inflationary, especially at these low rates. If this voodoo Fed magic works, Ben Bernanke is going to go down as the greatest economist in U.S. History.
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Quote from DisciplinedHedg:

The odds for a rate cut have fallen with this action by the Fed. That is providing a little stability and bounce to the dollar.
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Well, if you blinked you would have missed that bounce in the dollar. I guess people finally realized that Bernanke's bailout plan is bearish for the dollar after all. Go figure.
 
Quote from stock_trad3r:

because were still in a bull market which began on October of 2002. Unless the Spooz closes below 1252 we're still in a bull market.
More...

we're already in a recession. deep interest rate cuts that will only make things worse are the only reason why stocks haven't dropped even more.
 
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