That is the question as trading opens on March 17, 2008. Its been quite a weekend as JP Morgan bought Bear Sterns for $2 a share after getting a $30 billion loan from the USA to ensure the company's liquidity. I happened to see President Bush on Friday as he was in New York City to sign off on the bailout. I was taking my daughter to Japanese school when his limo buzzed by on 79th St. He smiled and waved cheerfully. Scary.
So the Fed lowered the discount rate this weekend as well. The move was just 25 basis points to 3.25%, slightly above the Fed Funds rate at 3%; but was no doubt meant to provide SOME good news for the markets on Monday. Give Bernake some credit for the diversity of his solutions, but does it mean the Fed Funds system is lacking market dynamics? Are banks not willing to borrow from each other?
1 comment:
Be honest, Anthony: Ih you hadn't had your innocent and beutiful little daughter with you, wouldn't you have told him to eat shit as loud as possible? I'll bet you were tempted!
Cheers!
Tom Degan
PS - I have a book for you. I'll give it to Dr. Nick to give to you. It is absolutely required reading if one wants to understand the nineties:
The Best of Times:
America in the Clinton Years
by Haynes Johnson
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