by Gary North
I do not have a new message here; we have known for a long time that advance preparation and a strong balance sheet are the keys to riding out a financial storm. As I have emphasized before, the Federal Reserve can deal with liquidity pressures but cannot deal with solvency issues.
~ William Poole, President,
Federal Reserve Bank of St. Louis (February 29, 2008)
The Federal Reserve System announced a new program on March 11. The announcement was not quite gibberish, but it was close. This much was clear: it is a $200 billion program.
The stock market bulls thought, "Wow! That's huge! That will solve the problem!" They did not read the details of the proposal.