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Jet Gorgon

I saw a speech Binky gave yesterday. He didn't say anything the whole market doesn't know already and gave no set plans on Fed initiatives. But, ya, the credit facility was put in place so banks can "borrow" at lower rates.
JP Morgan bailed out Bear Stearns but the kicker is that the Fed will ultimately be responsible if Bear defaults, which it will as all its clients are pulling out.
Binky has no plans. One "analyst" says he is doing a great job and that he inherited all these problems from Greenspan. Hogwash. He should have his finger on the pulse of the economy and he does not. Expect him to lower rates by at least 100bp next week. He's as lame as Lamont was as chancellor of the exchequer.

Hootad Binky

You did?

Jet Gorgon

^ He looks just like your kitty, Hootad.

sabang

The Fed bill has just gone up again, but in a typically opaque way. As part of the deal to sell off Bear Sterns, the Fed agreed to take on 'up to' $30 billion of Bears 'less marketable' securities. For less marketable, read least marketable- why would Morgan Chase do anything else than dump the worst of the worst on them? In short, sub prime stuff that you can't sell for 10% of Face value right now.

Anyway, part 2 of being screwed will be the Bush administration tax 'cuts'. Might be a couple of days though- I have a guest in town.

__________________
To err is human. To blame someone else is politics.

Hootad Binky

There was an excellent discussion of all this on BBC's Night News show; they gave it the importance it deserved and it took two panelists 30 minutes to explain all of it.