Short Term Trading Member Forum

[arjunah]

Frank, I agree that there are many looking for the exits, and can't get out, and about all the Fed is able to do now is to buy some time for the banks and funds to try to unwind as much as they can as fast as they can without causing a panic. Indeed, now the Fed is even taking the other side of transactions that no one else will take, as with the Treasury-for-junk swap, and the loan to Bear Stearns. Note all the press articles on how the Bear Stearns loan required the Fed to invoke a "Depression-era" law, indicating how desperate things are right now.