oh, apparently it's not a malfunction

[solarbird]

I noticed that the Fed-controlled slosh seemed to be falling through the floor the last few days - from $190B to $65B since last Thursday - and I had thought the source I was using was malfunctioning, so I didn't mention it. I was wrong; it really is plunging. And those target-rate misses are real, too. That's a huge problem. The former is directly under Ben Bernanke's control; why is the Fed draining liquidity, hard, during a supposed "liquidity crisis?" Karl at Market Ticker has some ideas about that.

Comments

[maellenkleth]

does cutting the liquid money supply make it easier to perform a revaluation?
(think it was Argentina where they did this, and then capped retail withdrawals of cash from banks: Economist had a story about this within the last year. Brain splody, cannot recall exact way it went, but ??pointer).