And when any of my friends here get ourselves in over our heads a little short on our grocery bills the fed will give us 0% money to see us through our stress when we can't borrow enough?
Why was the "street" short some particular bond issue in the first place? Were they planing on a. making money or b. losing money. When the fed gives them 0% money does this a. increase their losses or b. decrease their losses.
Me, I just want to know from the experts.
Of course the fed doesn’t care whether they make or lose money. I know. They are just watching liquidity in the banking system.
At the time I believe the Fed Funds rate was about 6%. Go figure. Now how do you explain that one? Who gave out the preferential rates, Andy? Huh?