And you won't want your daddy then, will you?
I wonder what the future holds!
-- Bauhaus, the sky's gone out
It is clear now, the FED has committed the last of its balance sheet to supporting FRAMAE. I used to talk about shock absorbers, the last of it is on the line. Hopefully it will be enough to provide a "safe-crash". I don't mean safe landing, I mean safe crash. If and when markets crash there is no santa to ride in this time. The FED has cut the rates it could cut the FED is all in.
Hopefully the Treasuries will not become virally infected by sub-prime with this latest move and the rest of the market can work out its issues in the meantime. Time will tell if the US central bank is to thank for buying us time as they sink with the nuclear stuff or whether the EU central bank is right by practicing tough love. Something tells me inflation will mask deflation in a weird global nominal GDP stag-nation.