Ben has turned into a wet noodle.
He's no monetarist...he's a
wimp.
Yes, we are in deep trouble. He hasn't a clue, no
backbone and
just think what fine sense he'll show
when even the Fed can't stand to lie
about the true
rate of inflation...
It's like a bad dream. It just
gets worse and worse...
Tim
Morge
www.marketgeometry.com
--- ketayun <ketayun@xxxxxxxxxxnet>
wrote:
> Fed Cuts Discount Rate, Says Dealers May Borrow
>
(Update1)
>
> By Scott Lanman
>
> March 16
(Bloomberg) -- The Federal Reserve reduced
> the rate on direct loans to
commercial banks by a
> quarter-point and said it will allow primary
dealers
> to borrow at the rate in exchange for a ``broad
>
range'' of investment-grade collateral.
>
> The central bank, in
a statement today in
> Washington, also extended the maximum term
of
> discount-window loans to 90 days from 30 days. The
> Fed
approved the financing arrangement announced by
> JPMorgan Chase &
Co. and Bear Stearns Cos. JPMorgan
> separately agreed to buy Bear
Stearns for about $2 a
> share.
>
> Fed Chairman Ben S.
Bernanke is stepping up efforts
> to keep strains in financial markets
from spiraling
> into a full-blown meltdown. Last week the
central
> bank agreed to emergency loans to a non-bank, Bear
>
Stearns, for the first time since the 1960s. Fed
> officials also
announced a program to swap $200
> billion in Treasuries for debt
including
> mortgage-backed securities.
>
> The Fed
lowered the discount rate to 3.25 percent
> from 3.5 percent, narrowing
the spread with the
> federal funds rate to a quarter point from a
half
> point. From tomorrow, primary dealers will be able
> to
borrow at the rate under a new lending facility,
> to be in place for at
least six months, the Fed
> said.
>
> The actions are
``designed to bolster market
> liquidity and promote orderly market
functioning,''
> the Fed said. ``Liquid, well-functioning markets
are
> essential for the promotion of economic growth.''
>
> Investors expect the Fed to lower its benchmark rate
> by as
much as a full percentage point, to 2 percent,
> when policy makers meet
March 18. That would exceed
> the 0.75-point emergency reduction on Jan.
22, which
> is the largest cut since the overnight interbank
>
lending rate became the main tool of monetary policy
> about two decades
ago
>
> ----- Original Message -----
> From: sue crew
> To: realtraders@yahoogroups.com
> Sent: Sunday, March 16, 2008 7:36 PM
> Subject: Re: [RT] TWO
BUCKS a share!!! JPMorgan
> Acts to Buy Ailing Bear Stearns at Huge
Discount
>
>
> Things are very serious
> -----
Original Message -----
> From: Deosaran Bisnath
> To: realtraders@yahoogroups.com
> Sent: Monday, March 17, 2008 10:27 AM
> Subject: [RT] TWO BUCKS
a share!!! JPMorgan Acts
> to Buy Ailing Bear Stearns at Huge
Discount
>
>
> JPMorgan Acts to Buy Ailing Bear Stearns at
Huge
> Discount
>
>
> By ANDREW ROSS SORKIN and
LANDON THOMAS Jr.
> Published: March 16, 2008
> Bear Stearns,
facing collapse because of the
> mortgage crisis, agreed Sunday evening
to be bought
> by JPMorgan Chase for a bargain-basement price of
>
less than $250 million, the two companies announced.
>
>
>
The all-stock deal values Bear Stearns at about
> $2 a share, based on
JPMorgan's closing stock price
> on Friday, the companies said. In
contrast, shares
> of Bear Stearns, which fell $27 on Friday, closed
at
> $30.
> A deal for Bear Stearns would end the
>
independence of one of Wall Street's most storied
> firms and help halt
a sweeping panic that set in at
> the end of last week, causing Bear
Stearns's stock
> to swoon 47 percent on Friday.
>
>
>
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