The Treasury began to pay off the weekly $25 billion in SFP CMBs this week resulting in a net paydown of $12 billion at Thursday’s bill settlements. That was a bullish influence on stocks as expected, but indirect bid data suggests that the FCBs weren’t all that aggressive in their bidding at the regular bill…
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Liquidity Trader, Professional Edition
Why Is Anyone Surprised?
by Lee Adler • • 0 Comments
A number of pundits noted that in the Fed’s recent data dump about its emergency operations during the 2008 “episode”, the Fed took stocks as collateral. The only thing that surprises me is that people are surprised by the fact that the Fed backstops stock prices. Bernanke even announced on November 3 that a key…
