Our Engineered ECONOMY and the MARKETs:
Last night, the Federal Reserve added liquidity to the banking economy. It added $4.5B (that’s right, BILLION) by purchasing overnight repos.
Yes, we the consumer are still paying a prime rate of 8.25%. Voting members say they are still concerned with inflation. But the fed is goosing the engineered economy by adding liquidity. What’s up, Mr Bernanke? Is there something you’re not telling us?