SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc.
AAPL 259.35+0.1%Jan 9 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: GVTucker8/21/2007 9:13:03 AM
  Read Replies (2) of 213182
 
OT macro stuff.....

The Fed is stuck.

The credit markets are going haywire. 90 day t bills are under 3% now. Two year notes are under 4%. It isn't a case of illiquidity. There's plenty of liquidity, it is just all going toward government securities because nobody wants to take risk.

Ordinarily this would be an instance that would cause the Fed to cut rates sharply. But right now, that won't make a bit of difference, because liquidity isn't the problem. And if/when the Fed cuts rates, it won't do anything at all. It won't cause the price of ANY security to change. And when that happens, when the Fed cuts rates and nothing changes, THAT would cause panic, because people would come to the realization that the financial markets have gotten out of the Fed's control.

So the Fed's stuck.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News