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Ol’ Wisco | I think the size and scope of the Feds move should signal just how precarious of position the credit markets were in. Just think about this for a second, GS and other liquidity providers were citing liquidity issues in major credit markets. These credit markets are core to the function of everyday Americans actions. Credit card use, money transfers, cash advances, LOC, and on and on. Just think how everyday Americans would react when they went to buy gas or groceries and their credit cards/debit cards would not work. You thought there was panic before.
I don’t believe we can say the Fed was right or wrong in their actions (I cautiously say they were right) bc without their actions we don’t know what situation we would be in.
My personal opinion is that the Fed may have pulled us from the abyss once again. BUT it just means that the next financial or economic issue to arise can will take an even larger bazooka. | |
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The Fed
