DJII just went negative. I’d have to rummage around a bit but I doubt there has EVER been a gap open of 2+% that was completely erased by the end of the day.
CNBC pundits have been noting all day that the stocks this obvious jam-job was supposed to bail out — the financial sector — is leading the losers today.
Just heard that this was the biggest stock market “intervention” (i.e. bailout) since September 11.
DJII is now down 50 after being up 300. Gonna be some real trouble tomorrow if it closes negative.
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Kevin Depew's daily Five Things You Need to Know to stay ahead of the pack on Wall Street:
1. Fed Treating Quarters Like Manhole Covers!
Man, sometimes the Fed treats a quarter like pocket lint, sometime like a manhole cover. The consensus last night was Bernanke's quarter point cuts in the Fed Funds and Discount rates fell squarely in the manhole cover department. Cheapskate! Now, however, we know there was a method to the Fed's madness. Let's look at what that method is.
2. Global Coordinated Liquidity Injection? What Does That Mean?
In Five Things yesterday we looked at the importance of the Fed's move with the Discount rate. While pundits yesterday afternoon decried the "paltry" 25 basis point Fed Funds rate cute, the markets were busy focusing on more important matters; namely, the paltry 25 basis point cut in the Fed's Discount rate.
It bears repeating that this is not a stock market problem unless you are a financial stock. But hey, there are literally thousands of stocks out there that are not financial stocks. No, this is a credit market problem. Consequently, the perceived disappointment yesterday was the refusal by the Fed to make the Discount window more attractive. Now we know why they chose that course of action: Global Coordinated Liquidity Injection.
On top of that, the Fed has up and changed the rules again! I’ll tell ya, between the coordinated agendas, discount window collateral changes, invisible hands, superfund conduits, sub-prime bailout plans and now, the biggest act of international economic cooperation since the 9/11 terrorist attacks, you can’t help but wonder what the heck it sees that the markets, 5% off their highs, have yet to price in?
LINK http://www.minyanville.com/articles/WMT-C-bac-ba-fre-fnm/index/a/15188