What the hell does Bernanke & Co. mean by "all available tools"?

saliva · Dec 17, 2008

Quote from bond tr4der:

Dude, why would you say 50 bps. C'mon, do you have any reading comprehension skills? It was essentially a 1% cut to zero as the Fed will tolerate a range between zero and .25% on the effective fed funds rate.

Yo homey, why don't these morons then just spell it out as 75 BP? Why the smoke screen when we're hovering near zero? Makes no fucking sense!

eagle · Dec 17, 2008

Using "all available tools" could mean:

1. Don't worry we're going to defense you.
2. Don't blame us, we did our best.

r-in · Dec 17, 2008

Quote from nutmeg:

That's funny. "Tools"? Congress, now there a box of tools.

Dang, you took my answer. It's the only correct answer. Look at all the good they've done so far.

scriabinop23 · Dec 17, 2008

Quote from saliva:

First of all, how large was the rate cut? Everwhere I look, I only see the same ol' headline that reads "Fed Cuts Rates Near Zero." Well, no shit Sherlock! It was already at 1%. What did you exactly expect? So did the Fed slashed the interest rate by 50 or 75 basis point?

Second, just what the hell does the Fed mean by using "all available tools" to fight the current recession. I want to know the specifics other than all the speculative bullshit that I hear on CNBC. They're fast running out of ammunition, not to mention that both TARP and TALF ain't working, so what more can they do to stimulate this bleeding economy.

all available tools:

Check: Interest rate policy
Not yet: Change banking reserve requirement.
In progress: Print money. Any amount possible.

Daal · Dec 17, 2008

Quote from scriabinop23:

all available tools:

Not yet: Change banking reserve requirement.

I dont think they will go there. in the 91 credit crunch they lowered reserve requirements to ease the crunch but banks found that the lower requirement made them exposed to overdrafts in their accounts with the fed when they had large transfers. this made the fed funds market extremely volatile

GCSICLRBC · Dec 17, 2008

All available tools include his helicopter from which he'll drop sacks of money into mall parking lots & strip malls.

If the Fed crashes the dollar in '09 the US Gov't better take back the responsiblity of printing its own money.

These bozos got us into this mess & now we expect them to extricate us!

HA! Thank goodness for futures markets!

Happy trading!

saliva · Dec 17, 2008

Quote from eagle:

Using "all available tools" could mean:

1. Don't worry we're going to defense you.
2. Don't blame us, we did our best.

It's the same ol' mantra: Same shit, different times. Otherwise, it's better known as "paradigm shit".

saliva · Dec 17, 2008

Quote from GCSICLRBC:

If the Fed crashes the dollar in '09 the US Gov't better take back the responsiblity of printing its own money.

I doubt it. They'll just create another bogus standard. Does anyone even remember Bretton Woods?

thriftybob · Dec 17, 2008

Quote from GCSICLRBC:

All available tools include his helicopter from which he'll drop sacks of money into mall parking lots & strip malls.

If the Fed crashes the dollar in '09 the US Gov't better take back the responsiblity of printing its own money.

These bozos got us into this mess & now we expect them to extricate us!

HA! Thank goodness for futures markets!

Happy trading!

How else would you devalue a FIAT currency?

Nothing else is going to work and they know it.

Landis82 · Dec 17, 2008

Quote from bond tr4der:

Dude, why would you say 50 bps. C'mon, do you have any reading comprehension skills? It was essentially a 1% cut to zero as the Fed will tolerate a range between zero and .25% on the effective fed funds rate.

Exactly.