It's Raining Money!

I woke up this morning, and it was raining money! The Federal Reserve announced Wednesday it was coordinating with other central banks to deal with the global credit crunch. Wall Street rallied after the surprise announcement. In a statement timed to occur before the start of trading in New York, the Fed said it planned to offer $40 billion in emergency funds to banks next week through an auction process.

Amazing. Yesterday's rate cut gets sold because it's not enough. The volume on the sell-off was a bit light, and it smacked of a one-day wonder. The same kind we had in the opposite direction during the correction. But the news being thrown at us from the media from day to day is extremely gloomy, even as the economy slowly advances month after month. So it is easy to give in and buy into the gloom.

We'll have to see how this kind of aggressive action is reacted to after this open.

Maybe I should have just used another Helicopter Ben picture!