Fed couldn't wait 40 hours to cut discount rate?

Quote from detective:

Bernanke's term expires in 2010, so we're stuck with him till then unless he voluntarily resigns, which is not going to happen unless there is a vigorous public outcry asking for it. We're stuck with Bazooka Ben for another 2 years, grin and bear it.
More...

Too bad Emperor's Club is no longer in business.
 
GetToTheChoppa.jpg
 
Quote from detective:

Really, was a lowering of the discount rate by 25 bp 40 hours ahead of schedule really going to solve anything or prove anything? It just tells me that Bernanke is the worst Fed chairman in the history of the Fed and is wearing out the panic button.

It is all so transparent that these Fed actions are intended to try to support the stock market and try to improve trader psychology instead of actually being used to sustain economic growth like their mandate states.

I thought it would be difficult to have a worse Fed chairman than Greenspan but Bernanke takes the cake. Bring back Volcker, or replace Bernanke with Fisher, someone with a pair of balls that isn't Wall Street's bus boy.
More...
Agree with you 100%, except for the part about being Wall Street's bus boy ... he acts a lot more like he's Wall Street's butt boy.
 
The fact that the BSC news was accompanied by the fed making these two moves blatantly tipped their hand:

someone else is in trouble.

They essentially moved the broker/dealer lending facility to 'effective immediately' (the TSLF won't deal til 3/27)...and also cut the discount.

The combination means they are preparing for investors to run someone...probably a broker, so they are opening the window, and setting the banks up as an entourage.

You might say, yeah but, that may just be because they sense a possible crash,..but they know better than that...the announcement of such a strategy will only serve to spark more panic. So it would be used only if absolutely needed.

That combination, and it's implications, is why this sell-off is happening.
 
This is part of Bernackes imperative to promote 'stable and orderly markets'.

Likely more cuts on Tuesday. Ben wants to spread cuts out to prevent large one time shocks that rattle confidence further.

Don't know how much good its gonna do..
 
Quote from achilles28:

This is part of Bernackes imperative to promote 'stable and orderly markets'.

Likely more cuts on Tuesday. Ben wants to spread cuts out to prevent large one time shocks that rattle confidence further.

Don't know how much good its gonna do..
More...

Obviously it hasn't worked so far.

I'm sure Bernanke is looking at the futures falling and will probably do another panic cut of 75 bp because stock market is weak. I really don't think he can wait 1 day to make the rate cut, my goodness, even Greenspan never panicked this bad.
 
At this point I think the only thing that can stop this is a coordinated world wide lowering of interest rates and a buying of the dollar.

I know, it sounds stupid.
 
Quote from detective:

The same thing that would have happened without the trivial announcement. Because everyone sees through it for what it is, another Fed bailout that just devalues the dollar even more and doesn't solve the real problems which can only be solved by time, not by panic moves and devaluation

In fact, I would have to say at this point, the Fed is hurting the market because traders will realize now that Bernanke can't save the day anymore and his short squeezing announcements last less than an hour, they used to last longer than that. Traders are losing faith in this Fed because its so panicky and wrecking the dollar in the process.
More...

That's right DETECTIVE!

You tell them how to really put the US Economy into a Great Depression by RAISING RATES in order to stabilize the Dollar . . . Sounds like a wonderful plan!

Moron.
 
You must log in or register to reply here.
Back
Top