Repercussions of the US Fed raising the bank dscount rate....?

[Aaron Sice]

http://www.ft.com/cms/s/0/f51cab54-1cf5-11df-aef7-00144feab49a.html

for discussion?

 

[Aaron Sice]

does this means bonds are the shiznit?

 

[Intrinsic_Value]

at this point in time i think its a non-event (but i could be wrong i dont have much experience with this).

As i have mentioned in other posts raising reserve ratio's is far more important as it effects the velocity of money.

 

[hobo-jo]

Don't know much about it, but came across this comment in my regular blog reading:

The current amount owed to the discount window is about $90B, down from a $400B crisis peak. If the balance were to remain steady for the next 12 months, the 25bp hike amounts to withdrawing an additional $2B from the system. Trivial. Meaningless. A joke.

http://garyscommonsense.blogspot.com/2010/02/much-ado-about-nothing.html