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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Kpain who wrote (7030)	11/12/2007 12:41:36 PM
From: GraceZ	Respond to of 50297

It was a temporary operation (a repo) to replace other temporary operations which had expired. Temporary gets repurchased by the seller when it expires within the term, 1 day, 3 days, 14 days, etc. What matters is whether or not the "free float" is rising. The only way you can know whether the free float is rising or falling is to keep track of the incoming ahead of outgoing to see if the balance is rising or falling. The important thing to remember is that the Fed doesn't do temporary to add money (add to the reserve base on which loans are made), but to defend their FF target, to set the price of money. The Fed does add money to the system on a permanent basis but the Fed hasn't done any permanent coupon passes since last May.