Tuesday the Market Saw Fed
Woo-Eee! The Fed rides in to save the day!
The Fed has, (as predicted by me, but who listens to me anyway) has announced a coordinated effort with foreign CBs to inject $200Bn in additional liquidity into the markets in the form of increased reciprocal currency swaps and extended overnight lending rates to effectively 28-day lending rates - something they are calling "Term Securities Lending Facility." Call it what you want, it’s FREE MONEY!
I am so relieved! I got very nervous yesterday when TXN warned after hours as I went out on a very long limb at 2:30 when I said to members: "I’m taking out my callers right now (the ones I am up more than 50% on) and looking to roll down here so this will be the last time before I give up and it will cost me a lot if I’m wrong about this but I’m just not seeing a rationale to how oil can be at $108 if the economy is so awful or how can the economy be so awful if oil is at $108 (and Elliot Spitzer can afford $5,000 hookers)?"
While our Governor may be playing with hookers it’s pimp-daddy Bernanke who’s shaking his money maker for the financials (and we just bought XLF calls yesterday too!). This is so great and the Dow is up over 200 points pre-market. Is it wise? Is it just? No - but it sure is fun while it lasts.
IN PROGRESS