Hobuoy

Here’s a great historical chart showing the DOW movements against the FED and Treasury interventions over the course of this crisis, good read (PDF):

1. August 17, 2007: The Federal Reserve Board announced a reduction in the primary credit discount rate from 6.25% to 5.75%. DJIA rallies 1,680 points over 9 weeks

2. November 26, 2007: Significant changes in limits for SOMA securities lending programme (federal reserve banks of NY). DJIA rallies 1,056 points over 3 weeks

3. January 22, 2008: FOMC decided to lower its target for the federal funds rate 75 b.p.s in an unscheduled meeting. DJIA rallies 1,134 points over 2 weeks

4. March 17/18, 2008:Bear stearns takeover on 17th March and FOMC decided to lower its target for the federal funds rate 75 b.p.s. Market expected 100 b.p.s. DJIA rallies 1,400 points over 8 weeks

5. July 15, 2008: Paulson’s testimony before Senate Banking Committee outlining plan to support GS’S (liquidity, sufficient capital and Fed consultative role). DJIA rallies 1,039 points over 9 weeks

6. September 08, 2008 Treasury takes control of Fannie and Freddie.

The powers that be know that the end game is already decided. Now its a struggle to keep up appearances until after the November election, otherwise they won’t stand a chance of edging the Dems. We are in BIG trouble folks, wake up America!