Well there is a lot about the CB's and what they do that I don't pretend to understand. But is it possible that rather than someone buying dollars, the fed has just stopped pumping so many out there? The following is borrowed from another thread...I'd sure like to hear someone take a shot at Chichi2's question...WHY?
Message 23937538
Chichi2: "Don't Fight The Fed" but someone is!
There is an important axiom "Don't Fight the Fed".
But quess what someone is... Fighting the Fed.
And that someone is very powerful.
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Since the Fed made its magical move of 50 point rate cuts in both the important Funding Rates. They obliviously have been watching for what would happen in the markets. Then, and only recently have we seen this powerful group take counter action.
Yes, it is the Fed, fighting the Fed.
Only Bob3 really has been watching them, see his postings
several days in a row the Fed has been Draining, not adding.
.
Fed. 1day RP + 2.25B [ net Drain bob3 10/3/2007 9:43:42 AM
Fed. 1day RP + 5.50B [net Drain -1.75B ] bob3 10/2/2007 9:43:06 AM
Fed. 1day RP + 7.25B [net drain sofar -4.50B] bob3 10/1/2007 9:45:37 AM
Fed. 3day RP + 4.75B [net Drain -0.25B] bob3 9/28/2007 9:51:02 AM
Fed.(2) 7day RP + 20.00B [Net Drain -11.00B] bob3 9/27/2007 10:02:40 AM
.
.
Each of those moves is taking Steam out of the Markets, and of course, they finally got their way for the moment.
My question is, WHY?
In the Fed's mind, Is something coming that will over-stimulate the markets on the Up Side?
Or do they think they over-stimulated the markets already?
Or what?
But it is evident to me, that the Fed, right now, the last several days, is Fighting the Fed! |
