| Ben acts... |
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| Written by Prophet | |
| Saturday, 20 February 2010 | |
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Or does he? So at precisely at the time with the weakest volume, on Thursday after trading had come to an end, we were told that the Fed Raises Discount Rate; Fed Funds Rate Unchanged. Before you call me crazy for calling it a conspiracy, someone beat me to the entry of how ridiculous the timing of this move was. Read here (shows how an institution got out with close to 2 million shares, just seconds before the announcement) Trying to screw people over aside, one has to ask, how significant this raise is, allow me to explain. This is the rate that banks use to borrow money from the Fed, and few actually do. In other words its purely symbolic and largely ineffective. We have built a huge debt load as a country, raising the real rates by themselves at this point would be enough to sink the country. Our pain as a country full of debt continues. Ben's action was a joke. Carry on. |
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