A discourse on timely and topical issues from the financial markets
Wednesday, October 31, 2007
The Fed Did the Right Thing
Not because they agreed with I posted yesterday, but because they told investors, as much as they can, what they are going to do going forward. They have rightly adjusted expectations while giving themselves flexibility.
6 comments:
Anonymous
said...
Unless there is a major suprise from a Wall Street firm, a major collapse in ARMs or a major economic slowdown, the Fed is done for awhile.
Recent Structured Credit management departures at a major U.S. bank smell like the smoke before a fire... there is more pain to come and the Fed act accordingly...
More pain yes, but unless the financial system is under enough pressure where there is no liquidity the Fed is not easing agan. It is not going to bailout the market forever. Yesterday's statement was a shot across the bow of every bank and investment firm, get your ducks in a row and start disclosing because Uncle Ben is not going to bail you out forever.
We would need to have a replay of august for teh Fed to come back in by December. I am not saying it is impossible, but there would need to be coverups by banks and brokers of criminal proportions (are you listening Cuomo the young?). Barring that, the Fed gave the markets one more treat and has locked up the candy bowl, as it should. The Big firms had better get their houses in order or disclose sooner rather than later (if they can).
6 comments:
Unless there is a major suprise from a Wall Street firm, a major collapse in ARMs or a major economic slowdown, the Fed is done for awhile.
Recent Structured Credit management departures at a major U.S. bank smell like the smoke before a fire... there is more pain to come and the Fed act accordingly...
More pain yes, but unless the financial system is under enough pressure where there is no liquidity the Fed is not easing agan. It is not going to bailout the market forever. Yesterday's statement was a shot across the bow of every bank and investment firm, get your ducks in a row and start disclosing because Uncle Ben is not going to bail you out forever.
I think we are seeing pressure and liquidity fears in the market today... finacial are going to be looking at counterparty risk more closely...
Fed will be back in Dec if not before at the discount window if this continues... IMO of course
I'm in the middle of today's post. It addresses your first sentence, mr. anonymous.
We would need to have a replay of august for teh Fed to come back in by December. I am not saying it is impossible, but there would need to be coverups by banks and brokers of criminal proportions (are you listening Cuomo the young?). Barring that, the Fed gave the markets one more treat and has locked up the candy bowl, as it should. The Big firms had better get their houses in order or disclose sooner rather than later (if they can).
Post a Comment