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

Quote from brettman9:

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.
More...

Was thinking the same thing
 
i tell you what, at leas this makes the FOMC meeting much more easy to trade. Now that the discount rate has been cut to 25 basis points above the fed funds rate, you know come FOMC that the discount rate will still be 25 above the fed funds rate.

I was scard of the situation if the fed funds rate was cute 50 basisi points and i short the market, but the discount rate was cut 100 basis points and the markets jammed up. now it will be much more clear to trade the announcement
 
Quote from fseitun:

Technically speaking, can Bernanke be replaced by someone else?
More...

Why replace Bernanke -- he's doing the best he can give the pile of excrement he inherited. 99% of the negative comments directed at Bernanke actually belong to Greenspan.

There is no excuse for this credit crisis to exist...

Lax loan standards -- blame Bush administration, failure to regulate bank and mortgage lending standards

Lack of transparency of CDOs -- blame Bush administration for not creating and enforcing transparency regulations
 
Quote from Ivanovich:

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.
More...
They might end up doing it.
 
Quote from Ivanovich:

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 buzzy2:

They might end up doing it.
More...
Yes, such a move would be incredibly complicated though...

In a Cournott Nash universe they could pull it off... everyone would just do what's best for everyone as a group... collaboration, wonderfull thing.

However, you only need one country to go Bertrand on the US... and they would take the whole pie.
 
You must log in or register to reply here.
Back
Top