teletubbies thursday, page-167

this article is a fun little read providing an alternate perspective of fed recent action.

http://market-ticker.denninger.net/2008/03/short-bus-rolls-again.html

below is a snippet

The action today was nothing more or less than an attempt to stabilize Agency spreads which were blowing wide in a historic short squeeze that was threatening to collapse major financial institutions!

Yet if you listen to CNBS, including Fast Money, you hear these guys saying that "The Fed Injected 200 billion in money."

NO THEY DID NOT! IN FACT, THEY EXPLICITLY INJECTED EXACTLY ZERO DOLLARS INTO THE SYSTEM; A SWAP OF ONE SECURITY FOR ANOTHER OF IDENTICAL SIZE AND FACE IS A BIG FAT NET ZERO IN TERMS OF BALANCE SHEET AND MONEY SUPPLY IMPACT.

THE FX MARKETS "GOT IT" IMMEDIATELY BUT NOBODY ELSE DID!

The Fed did what it always does - try to bail out the banks.

Who's in trouble?

Who the hell knows - they won't tell us!