Just as I expected in my previous post earlier today, the Fed has rescued the stock market again today by opening up the discount window to Freddie Mac and Fannie Mae. However, this rally is not due to bullish buying. It is purely a short-covering rally, so it probably has little support. This Fed is no longer the lender of last resort. It is now the lender of every resort. Will is also come to the rescue of consumers and small businesses, too?Friday, July 11, 2008
Fed Rides to the Rescue Again
Just as I expected in my previous post earlier today, the Fed has rescued the stock market again today by opening up the discount window to Freddie Mac and Fannie Mae. However, this rally is not due to bullish buying. It is purely a short-covering rally, so it probably has little support. This Fed is no longer the lender of last resort. It is now the lender of every resort. Will is also come to the rescue of consumers and small businesses, too?
