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
A great observation. They see everything the rest of us see: today's monthly installment of the "volatile food and energy prices" lie, inevitable mass foreclosures nationwide, inevitable rising prices of many imported goods, etc.
They're trying to stop a supertanker from crashing and they know they need a lot of time to do it. They also fear that they might already be too late.
Paulson in particular is wondering if his term at the helm at Morgan Stanley is going to come back to haunt him once they get serious about going after the brokerages that wrote crap CDO bonds.