Comments

1. parksmarts says:

   September 25, 2008 at 9:47 PM

   without treading into most of what Mr. Ron Paul mentions in the above video…I view the proposed government actions as being a form of solution to a more immediate technical-type market unpleasantness, perhaps like American equities in 1987. I suppose one of the major things to be affected by the proposed actions would revolve around balance sheet conditions. With a change in balance sheet conditions the demand for money to support current balance sheets items may chill-out a bit and reduce the immediate demand for money, helping to alleviate pressures in the money market slightly. However, how the suppliers of interbank dollars and other short term money view the risk overtime is beyond me. I suspect that when an agreement is reached dollars for less than 30 days will cost a bit less. The fundamental picture is still pretty bad in my opinion and will probably help to spur another round of extremely tight money in the relatively near future.

   I don’t really think that arguing fundamentals is right right now, especially in a money market like this. I see it as being an attempt to attack a more ‘technical’ issue.

   That would really be far out if we saw really negative interest rates from the fed to banks. Remember all that ‘next rate decision upward’ talk? what a croc