That monster stock market rally today
Bob Morris @ Mar 11th 2008 19:49 - Category: Credit crisis
It was triggered by the Fed saying they’ll sell $200bn of t-bills on a short-term basis, using as collateral the toxic sludge banks and hedge funds can’t sell. Thus, the Fed is acting like a pawnshop, except the collateral is hard to price because there are few buyers for it.
Some think was specifically aimed at propping up wobbling Bear Stearns.
The Federal Reserve’s actions today may have been strongly influenced by Bear Stearns’ problem.
- Analyst Dick Bove of Punk ZiegelPretty wild stuff — $200 Billion in Fed lending against junk paper, to bail out one mid-size investment bank.
1 Comment »
One Response to “That monster stock market rally today”
Leave a Reply
Comments subject to deletion at whim of capricious webmaster. Disagreements are ok. Flames, trolls, and right-wing attacks are not. If your comment doesn't appear immediately, then moderation is on, thus there's no need to re-send it.
(However sometimes the anti-spam programs here go awry. Email us if your comments seem to vanish into the void.)
Stock Market For Beginners on 17 Mar 2008 at 9:08 pm #
Every rally is a fake one right now. One day up, then two or three down. Not a pretty picture.