Ernst Stavro Bloviator, Senior Fellow at the IER, issued the following statement:
"Today was a contest to see who would panic loudest, and the Federal Reserve won. Either the Federal Reserve member banks have had a complete collapse in commercial lending, or the FED has gone insane. Either choice is not good for the long-term health of the financial markets. Market activity in commercial credit will be interesting to watch in the next few weeks."
"I am sure that some of the dim bulbs that sell real estate will be chirping about how this solves their problems. My challenge to them is to show the linkage between the Fed Funds Target and mortgages and consumer credit. It isn't there, but they will insist it is."
The IER has reduced the CRASH-CON alert system to CC-2B, and could issue a CC-1 at anytime. People are advised to keep alert for deterioriating fundamentals.
We now return you to the mindlesss speculation and historical ignorance that created this problem in the first place.
3 comments:
Eleua,
What happens when the FDIC runs out of money?
What happens when the FDIC runs out of money?
Total protonic reversal of the fractional reserve banking system.
FDIC can't take WaMu without Congress giving them scads of money.
Think about that when you have money in the US banking system. We are one large bank away from some form of panic. Yes, Paulson might be able to get your money out of that rat-hole, but it would not happen without a noticable delay and subsequent panic.
The real panic comes when the American Sheep wake up and start asking if their bank is solvent. They might just try to reduce their savings to cash.
Maybe you should rename that song shack rattle and roll to crash raddle and roll.
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