Federal Reserve Makes Emergency Moves....Again.

As I have repeatedly said on here, the general Wall Street type simply doesn't understand the scope of what we are looking at here. And we see that by the fact that funds loaded up on banks in the fourth quarter. The credit markets are again choking on their own vomit over the last week. (Sorry about the graphic. But Wall Street bankers have really created one hell of a mess. They get an 'A' for effort.) As I said before, this is not a subprime problem. Subprime simply is the first symptom of other problems. If someone has shoulder pain and has suffered a massive coronary, giving them an aspirin is not solving the problem. The Fed is giving the patient aspirin. The press is reporting the shoulder pain. As I've said before, the Fed right now is trying to save the banking system. And, we should all hope for their success. I ultimately expect much more creativity in solving many issues but those will likely occur only if we have a near disaster in the economy, the banking system or both. Instead, today we hear about moral hazard. Well, we've heard this before in history. When we've had implosions, being high and mighty on the virtue scale goes out the window. People seem to forget the tangled web of the economy. Those who did nothing wrong will pay as dearly as those who did if this virus goes unchecked. If people want an opportunity for employment and to keep their livelihood in some form, we are likely to ultimately see solutions that burden the whole of the population.

Today the Fed has made another emergency move. Here's a link to the announcement. It looks like more of the same; short term loans to distressed banks. It also coincides with with what could be a very short term low either today or Monday. So, if we do get a minor rally, we'll get t0 read journalists say it was because of the Fed in their usual correlation equals causation reporting.