Desperate times call for desperate actions. The Fed did was expected of them. They have introduced something innovative. Bernanke and company have reverted to “operation twist”, a program that has not been implemented in nearly half-a-century. The problem, is that yesterday’s announcement doe not provide new liquidity to a financial system where the market already sees European liquidity crunch intensifying. Policy makers did however surprise dealers with the size and targeted maturities to be bought in the program, but, basic growth concerns remain. The market does not have a handle on what these asset purchases ... (full story)