Brave face masks bold lie

Mish’s Global Economic Trend Analysis on the Fed lowering rates and opening the discount window.

A well respected source whose opinion I respect offered this viewpoint anonymously: “Basically this is a PR move coordinated by Fed to hide the fact that going to window is emergency move. It hides the fact that some banks have to.”

The implication is that something big is coming down the pike even if we do not know exactly what it is.

Precisely.  If the subprime meltdown is so contained then why are the banks borrowing such huge amounts?

Then there’s Sentinel Management. They handle cash accounts for futures accounts and blew up last week saying the subprime mess had caused it. Not so says the SEC, because it now appears Sentinel moved money from client accounts into their accounts then used it as collateral to borrow more. Then the money vanished. Clients will be lucky to get 50 cents on the dollar. It’s a given the principals at Sentinel will go to prison, with a French hedge fund already facing major losses because of them.

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