``In effect the market has already tightened. Signs of a money crunch are showing up in these soaring money market rates in durations longer than overnight. I have addressed the idea that the Fed probably could not make a rate increase stick, and the lack of movement in overnight financial company commercial paper as well as Fed Funds supports that. But there are clear signs of turmoil even in maturities as short as 7 days, and more so at 30 and 90 days. Apparently the Fed may not even be able to prevent a spontaneous self generated market tightening from spiraling out of control.''

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