Fed added $900 billion (with a B) in TAF auctions. Did jack nothing. Rate cut will only be a psychological band-aid. Nothing going on in the market is based on reason. This is pure emotion. Pure panic.
I agree on the panic, and it has been coming for a while. I’m surprised that so many were surprised. I don’t know if those in charge were asleep at the wheel, are just stupid, or knew this was coming and either thoght they could delay the day of reckoning, or decided to ride it for all it was worth until the bottom dropped away.
The scale of the problem would appear to be greater than what government can affect to fix. If this is not out of the government’s control, it will be soon enough. Things seem to be coming very fast. Frankly, I am still shocked how quickly we went from having 5 autonomous major investment banks to having none.