Dear Investors, Please stay calm. With our selection of stocks, there is no problem. And the market may have stood the test today. So, there is nothing to worry. Just know that you will have many days like this and need to get used to it, by knowing that you got things covered no matter what. As for traders, they will take care of themselves.
Have a good and restful weekend if we do not speak more today.
Good Trading
4 comments:
hello boris and "family".
the fed has certainly responded to critics who said it didn't do enough yesterday. injections of $19b at 0825, $16b at 1055 and $3b at 1350 for daily net of plus $26b.
colostomy bag v funny john b - or perhaps not: too near truth. i imagine u have seen the "Clarification of Collateral Tranches on Desk RP Operations" at the fed site. any idea of why they would have felt it necessary to issue that?
Dear Malcolm, good to hear from you on this very interesting days. Chinese Curse is certaninly working on us. "May you live in interesting times"
GOod Trading
Malcolmm,
Sorry I didn't respond yesterday...computer problems most of the day.
That statement from the FED about using mortgage backed securities was the most interesting statement of the day. For the first time I can remember, they used non-government investments to conduct an open market operation. In 30 years of watching the FED, this is the first time I can remember them doing anything like this.
I am assuming it was done to sooth the markets and to make a statement that the FED is willing to directly supply funds to a sector of the market that is having difficulty.
It is starting to appear that the market does have a put at the FED. Maybe not the type it had under Greenspan, but a more direct method of intervention.
It will be interesting to see how this develops over the next few days.
BTW we don't know what the securities were nor the value represented as market value to the FED. It is the value of the securities that has caused the problem, but if the FED is willing to accept the street's market value, they could just be giving cash to dealers. Maybe they feel that in addition to the banks, the major dealers can not be allowed to fail. (If that is the case, we could have some very unintended effects.)
John B
Dear John,
No wonder, I call these people SOPITALISTS, they will not hesitate a second if they can bail out Brokers(Speculators) with our money.
What a despicable act.
Good trading
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