The Black Box

[michalel97123]

http://finance.yahoo.com/q/bc?s=%5EDJI&t=my

Long term we are fine. I spoke to some friends at a big firm who are involved with hedge funds. They are happy 8/15 is behind them--its the last day for redemptions in the period 9/30-10/15 approx. Whatever the gross numbers are at least they are out there now and the hedgies can plan accordingly. Many anticipated redemptions and/or met margin calls because of inabllity to value mortgage portfolio.
Thought is also is that these numbers and I dont know how one gets them, is what the fed was looking for before they took more definitive action than just pushing cash to the banks. Banks are apparently taking that money at 4% and setting it aside for reserves against their own portfolio losses. Fed wont let that happen for long it is thought. Spend it or dont borrow it.
Anyway starting tomorrow or the next day, we can expect a clearer message from the fed. Joke is that they didnt change their message last week about inflation and now they may have to do a 180. Perhaps not. If they are to look foolish maybe they only want to look foolish once rather than lower rates and then after quicker than expected bounce back they have to do another 180 if inflation shows its ugly head. All of the above is speculation. It offers some hope as to what may happen tomorrow into monday-tuesday if this continues in the markets.