Great chart, via Plexus Asset Management:

>


Fed_mechanism_3

Its so simple! How can this not work?

>

Source:
Why the Fed’s rate cut did not come as a surprise
Ryk de Klerk
Plexus Asset Management, August 17, 2007
http://investmentpostcards.wordpress.com/2007/08/17/stock-markets-how-deep-is-the-rabbit-hole/

Category: Credit, Currency, Derivatives, Federal Reserve

Larry’s Favorite Blog . . .

Category: Financial Press, Media, Weblogs

FOMC Statement: 50 BP Discount Window Rate Cut

Category: Federal Reserve

Global Correction

Category: Investing, Markets, Technical Analysis, Trading

Quote of the day: Kasriel on Leverage

Category: Credit, Derivatives, Psychology

Open Thread: A Stealth Fed Rate Cut?

Category: Credit, Derivatives, Federal Reserve, Hedge Funds, Psychology

Subprime Credit Rot

Category: Credit, Derivatives, Hedge Funds, Psychology

Off to Bloomberg TV

Category: Media

Quote of the day: Moral Hazard

Category: Credit, Derivatives, Psychology

Attention Robert Novak: The Fed isn’t at Neutral

Category: Data Analysis, Federal Reserve, Financial Press