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A Market Rally Based on Garbage Paper

 Mar 12, 2008 03:37 PM UTC
Return Risk
+0.00% MID
Tracked Blogger
Symbol Sentiment Start Return Closed
INDU Negative 03/12/08 +100.00% --

3/11/08 - "The Fed action came at a time when the markets were ripe for an oversold bounce...The good news is this will help brokers and banks; the bad news is it will do nothing to help the Housing market, or stop the decline in House prices. Nor will it help resolve the inverted pyramid of derivatives that sits atop Housing. And, one has to believe it will only add to inflationary pressures."


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Dow Soars More than 400 on Liquidity Injection
3/11/08 - "James Glassman, senior economist with JPMorgan Chase, said it was the first creative thing he has seen the Fed do since the advent of the credit crunch. "It provides a little more of a calming backdrop, and it takes pressure off those institutions," Glassman said. He also pointed to the deal's psychologically important global reach, given the Fed's collaboration with some of its fore...
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Graphic_rating_sell SPX
Fed in "Panic Prevention" Mode
From Merrill Lynch: 3/12/08 - "The Fed continues to react to events as they unfold, moving incrementally and targeting its actions towards bolstering liquidity in the financial system. This latest experiment, as with the others undertaken thus far, does not address underlying credit problems, does not materially improve the solvency of the institutions exposed to assets under stress, does no...


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