Reply #6: fed needed 20 billion in liquid repos on 7/5/05

[dbeach]

http://urbansurvival.com/week.htm

From: dcb Jul 5 2005 3:20PM Title: liquidity pump today

"Anyone know why the Fed needed 20 billion in repos today, with none expiring? It's not like rates are even at the target; they are well below around 3.18. So why the burst or money? Usually, such a pump would be the direct result of "something bad" like a terrible employment report.

And the delayed the announcement too, probably to see just how much they needed to add in after the conference call with the other players. Any thoughts? "

dcb


..." It was COMPX post 404071 dated July 5. Here's the link, if you want to see it for yourself: http://clearstation.etrade.com/cgi-bin/bbs?post_id=6658705&usernm=dcb . dcb, like some other folks I have run across on the boards over the years, thinks their is a direct link between the Fed's liquidity injections into the system, and the markets. I don't know. I'm not an economist, I just pick stocks. But, if you are interested you might want to check it out sometime. In any event, in light of this morning's events, I remembered this post from two days ago and found it interesting. Keep up the good work."

It's OK, paranoia isn't all bad - in point of fact, it's a survival skill. If I had any sway in CONgress, I would sure be asking the Fed all kinds of questions about the $20-billion in "easy money" out this week - in advance of the London attack... more grist for the LIHOP/MIHOP crowd. And I won't even mention the banging on Gold and Silver over the preceding week! Here's hoping a federal grand jury will look at some of the big plays in advanced of events."