I know I'll get flamed for this because so many people here just plain want the market to go down that they won't see that what was done was done to curb total disaster.
The briefing.com report, in my humble opinion, is spot on. Odd that they say the ECB has injected 200 billion when the first 90 or so of it was only overnight. The rest is for the weekend only, just like the Fed. It was done to prevent an outright collapse of the system - similar to a run on banks, if you will.
Consider a bank - just a regular small town joe schmo bank - that has poor accounting practices and, as a result, denies withdrawls for it's customers. What happens? Word soon gets out that the bank stopped giving money because of problems. Now everyone rushes to the bank, but no one gets any money. But what also happens? Everyone else rushes to all other banks as well, worried that they, too, won't get their money back. This causes other banks - perfectly healthy ones - to begin to cave as well.
This is what we have. Right now, right here. Now you can argue all the "fuck em, they deserved it for playing in the CDO market" you want, but at the end of the day, no one - not even perma market bears - are served by an all out market calamity. The Fed came in to allow for calm. To give market participants a pause. To stop the run on the banks in the previous analogy. And they did it just at the right time, if you ask me.
They won't be cutting, like everyone is now beginning to think. I still think they'll hold rates as is. If they did not do what they did today, they would certainly have to cut - by leaps and bounds. But by then it would be too late.
So ease up a little. I know everyone here hates the Fed and wants total financial armageddon. But you just think you want it.
You really don't.
:eek: