A Review Of The Intervention Bomb

Posted at 3:45 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Here is intervention #5 which happens to also be bomb #5

Fed, major central banks slash rates
More moves expected in effort to stabilize financial system
By William L. Watts, MarketWatch
Last update: 10:11 a.m. EDT Oct. 8, 2008

WASHINGTON (MarketWatch) — The U.S. Federal Reserve and other major central banks moved in concert Wednesday to slash key interest rates as part of an ongoing effort to quell financial turmoil that has threatened to flatten the international economy

In moves announced simultaneously before the opening of U.S. markets, the Fed cut its key lending rate by half a percentage point, to 1.5%.

The European Central Bank trimmed its key rate to 3.75% from 4.25%, and the Bank of England cut its benchmark rate to 4.5% from 5%. The Bank of Japan sat out the move but issued a statement backing the action.

The Bank of Canada, the Swiss National Bank and the Swedish Riksbank cut rates as well.
The move was hailed by economists, but did little to provide lasting support for tumbling equity markets. European indexes rebounded strongly but soon returned to the downside. U.S. stock index futures spiked higher, but then dove back into negative territory.

More…

Libor rises and the credit market continues to be super glued.

Equity selling is violently oversold but rallies have no legs.

The US dollar rally has no fundamental legs.

The problems in the US exceed economic problems anywhere.

Great Britain is simply another state of the USA, at least in this administration.

Euroland has problems but they will continue to lie and hide.

If you do not have cash on hand, gold in the mayo jar, distance between you and your financial agents, paper certificates or direct registration book entry you are simply a financial disaster waiting to happen.

The Big Boy of the Money Guys, Paulson, is following up on the President and Chairman of the Fed. Let’s see if he gets the same or different market treatment.

Gold is going to $1200 and $1650.

The US dollar will trade at .72, .62, and .52.

The SEC has put the onus on US brokers involved in the Jitney practice to see that short sales are properly delivered in 3 days. Massive amounts of subpoenas have gone out to enable a review of this practice. Subpoenas have also gone out to funds internationally via their US jitney brokers to review their position and pattern recognition between various entities. The sun is rising on the shadows. Those that hide in the dark to injure for profit cannot exist in the light.