Just off the top of my head, here are some of the actions taken in the last week that the market has essentailly ignored. The risk is that price action will suddenly “sharpen” the focus of traders and have them realize the extraordinary nature of what has taken place.
- $700 bln Tarp which gives Treasury the flexibility to buy loans, recapitalize banks or do just about anything else it wants. None of that has yet come to market.
- The Fed entered the commercial paper market to allow corporations to rollover their borrowing.
- The Fed doubled the size of its liquidity injections for banks to a total of $900 bln.