<i>"After all the minutes stated that if this crisis continues, there will be a "solution" provided to stabilize the markets. Well, let's stabilize it then!"</i>
There is no solution, no easy cure from the Fed. Just bandaids slapped on here & there to staunch arterial bleeds.
The subprime mtg fiasco has barely begun to ripple thru. This fed nor any other govt has the resources to bail out every penny. The LTCM bailout wasn't a global web of banks... it was one intellectually stupid hedgefund. The Asian contagian wasn't global, it was regional. The Russian crisis wasn't global, it was regional.
This time, the problem is global. A U.S. govt solution does not cure a global crisis... that bubble must take its course, sooner or later.
Four long years of a straight-up bull market, one of the longest in recorded market history. Built upon a base of cheap money and flooded liquidity on a world-wide basis. Eventually, repos get called in. Notes come due. Pipers get paid, unless there ain't enough to go around.
All cycles come to an end. This one will, too. Perhaps it already has
