Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Mannie who wrote (1635)	10/23/2003 5:47:40 PM
From: mishedlo	Respond to of 110194

From John Succo/minyanville $17 billion repo injection The Federal Reserve injected a rather large $17 billion into the system this morning through the repo market. It is not month end and there is no government bond auction. We don’t know if there is a good reason why the Fed would inject so much liquidity (they don’t tell us mere mortals), but it is rather coincidental that it comes the day after a larger than normal (at least recently) down move in the market. I have stated before that lower volatility encourages investors to buy stocks and I stated yesterday that liquidity (at least in the short run) mitigates volatility. So without another good explanation I must conclude that the Fed is targeting lower volatility and a higher stock market.