Friday, March 20, 2009

The Market On Friday

The Fed's move to buy up long term bonds has set off a negative reaction among investors.
The idea was to encourage more economic activity by lowering interest rates, including those on home loans, and to help the financial system as it struggles under the crushing weight of bad loans and poor investments.

But there were also clear indications that the Fed was taking risks that could dilute the value of the dollar and set the stage for future inflation. source
The negative aspects of this new Fed move including the fear of future inflation has affected the present market. The rally seems to be over for now.

Reuters: Wall Street set to extend losses

2 comments:

Glynn Kalara said...

Inflation, Oy just what we need next. This is like a very bad storm that just gets worse as the night goes on. Inflation will finish off whats left of the middle class. First we have our investments savaged by the stupid arrogant Banker and Finance Corps and now the double whammy of The stupid Gov't response? WTF!

Jim Sande said...

The rich didn't just get richer, they got everything.