Casey's Charts: Market mayhem has the Fed off balance
“The Fed has resorted to new extremes in this financial crisis by selling off and lending its good assets, US Treasuries, in exchange for toxic waste. The result: the Federal Reserve's balance sheet has been completely restructured – including innovative off-balance-sheet hocus-pocus – and looks like it's headed for exhaustion.
“As the government's primary tool for stabilizing the US banking system, the Fed is now in dire need of a new source of lending to bail out other troubled banks.”
Bespoke: $700 billion and what it can buy
“Since the financial rescue package was signed into law last week, financial markets across the world have taken the pace of their declines to a higher gear. This has prompted people to ask what the Treasury is waiting for. Yesterday afternoon in a press conference, Secretary Paulson said that it ‘will be several weeks before our first purchase'. read more
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