In the Feds we Trust

The Federal Reserve can no longer send the interest rates lower. Interest rates are now at the lowest rates since 1987 when Jimmy Carter was in power. This report is coming after the Fed announced it would buy back $300 million in U.S. Treasury Securities and Mortgage Backed Securities. Essentially the Fed is now printing money to raise the credit supply which will in return lower the long-term rates of mortgages and other loans. Shocked by the news, Wall Street shot up on Wednesday. Bernanke made a gutsy call in this case yet I see it paying off long-term and this is why. With the infiltration of credit into our society the housing market may have finally hit rock bottom. With signs that mortgage rates will stabilize Americans can go back to buying Houses something that we say an abundance of in the years preceding to 2008. Bernanke has also situated a way for Hedge Funds to buy up the less-toxic mortgage backed assets. This will help shift the burden off the government and allow for Wall Street to both help out the economy yet profit at the same time. The infiltration of these new policies along with the new mark to market account rules is just what the economy needed. This boost should continue to send the Stock Market roaring this week as the buzz around Wall Street has been all "Hi Hoes" as of late. Side effects of this move will be the weakening of the dollar. This however is not much of a concern as when the economy turns around so will the dollar. Be sure to take advantage of this market volatility in the next several days. As of late Banks have been strong Day-Trade or Short-Short Term (Less than 3 Days) plays. You should see similarity in Tech as I see that industry poised for a rally with the news of Cisco shifting to the Server business, Google with the launch of Telecom, and Apple who has a hidden agenda. Enjoy it while it lasts because who knows how many more positive days this market can handle.