[HereWeGo]

Of course. But this stops the possibility of a near term disaster. Housing will still fall, exotic mortgage products will still be very, very hard to get. That does not change, IMO.

[HereWeGo]

Here’s the actual Fed release. I’ve bolded some areas that are very significant IMO:

“Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.”

“To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee’s target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks’ usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower.

These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.”

That’s a very good start, and it might indeed be sufficient.

[HereWeGo]

Here’s the actual Fed release. I’ve bolded some areas that are very significant IMO:

“Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.”

“To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee’s target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks’ usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower.

These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.”

That’s a very good start, and it might indeed be sufficient.

[HereWeGo]

Here’s the actual Fed release. I’ve bolded some areas that are very significant IMO:

“Financial market conditions have deteriorated, and tighter credit conditions and increased uncertainty have the potential to restrain economic growth going forward. In these circumstances, although recent data suggest that the economy has continued to expand at a moderate pace, the Federal Open Market Committee judges that the downside risks to growth have increased appreciably. The Committee is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.”

“To promote the restoration of orderly conditions in financial markets, the Federal Reserve Board approved temporary changes to its primary credit discount window facility. The Board approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent, to narrow the spread between the primary credit rate and the Federal Open Market Committee’s target federal funds rate to 50 basis points. The Board is also announcing a change to the Reserve Banks’ usual practices to allow the provision of term financing for as long as 30 days, renewable by the borrower.

These changes will remain in place until the Federal Reserve determines that market liquidity has improved materially. These changes are designed to provide depositories with greater assurance about the cost and availability of funding. The Federal Reserve will continue to accept a broad range of collateral for discount window loans, including home mortgages and related assets. Existing collateral margins will be maintained. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve Banks of New York and San Francisco.”

That’s a very good start, and it might indeed be sufficient.

[HereWeGo]

I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

Yeah, that might not be a bad idea. The bulls aren’t back in charge, but they’re probably back to even at this point.

[HereWeGo]

I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

Yeah, that might not be a bad idea. The bulls aren’t back in charge, but they’re probably back to even at this point.

[HereWeGo]

I think I’m going to load up on EWJ. Japan market got wacked last night, and I’m thinking of loading up before the next trading session overseas.

Yeah, that might not be a bad idea. The bulls aren’t back in charge, but they’re probably back to even at this point.

[HereWeGo]

That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

As for the shorts – hey, this risk has been out there for some time. C’est la vie

[HereWeGo]

That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

As for the shorts – hey, this risk has been out there for some time. C’est la vie

[HereWeGo]

That’s helpful, but probably not entirely sufficient. It certainly sends the message that the Fed is no longer on the sidelines (stealth FFR cut aside.)

As for the shorts – hey, this risk has been out there for some time. C’est la vie

[HereWeGo]

Yeah, and the Colts will lose the Superbowl.

JES-finance.yahoo.com has real time index quotes, although the equity prices are 20-min delay (which is forever in this market.)

[HereWeGo]

Yeah, and the Colts will lose the Superbowl.

JES-finance.yahoo.com has real time index quotes, although the equity prices are 20-min delay (which is forever in this market.)

[HereWeGo]

Yeah, and the Colts will lose the Superbowl.

JES-finance.yahoo.com has real time index quotes, although the equity prices are 20-min delay (which is forever in this market.)

[HereWeGo]

Not quite. Whoa.

[HereWeGo]

Not quite. Whoa.

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