Open Thread: Fed Intervention

Monday, August 13, 2007 | 08:33 PM

Here's a question which I hope the assembled crew can answer (in a civil tone!)

How appropriately or inappropriately has the Fed intervened so far in 2007?

There has been no rate changes this year (despite desperate pleadings). In fact, the Fed hasn't even changed their operating bias.

They have acknowledged the Housing slowdown, and even noted the credit crunch -- although anyone with one eye and half a brain has figured out that their claim of "Containment" is laughable.

The biggest action they have taken was last week's massive repo repurchases to inject lots of cash into the system.  Ironically, its not even 2 years since the reporting of M3 was cancelled -- and here we see the biggest difference between M2 & M3 soaring in activity.

Here's the radical part:  When the market set inter-bank rate spikes, what other options does the Fed have but warm up the choppers?


What say ye?

Monday, August 13, 2007 | 08:33 PM | Permalink | Comments (74) | TrackBack (0) add to | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference Open Thread: Fed Intervention:


Very appropriate, so far. But they don't have many good choices left.

It doesn't matter how well they play it at this point -- it's how they've played it for the last 5 years that counts.

Posted by: speedlet | Aug 13, 2007 8:50:28 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™