We wake up today and hear that the FED is doing "repo action" or something like that. I'm not an economist... I don't know what they're doing.
But take a look at the futures! You see that spike up? That's when CNBC reports that the FED "cancelled their repo action."
Everyone thinks, YAY! The FED doesn't see the need for more liquidity, everything must be "okay!"
Ah... but what about that spike down? That's 5 minutes later when CNBC says that the FED cancelled the "repo action" because of "technical difficulties" and that they'll be doing it, but just a little later.
Makes for an exciting morning.
Wednesday, August 15, 2007