At today auction the Feds gave $6.25 bln at 2.42%, which is 108 bps below current target rate and 183 bps below last week target. 1.83% rate cut in 3 days – ouch! Without this particular add it would be a drain, so Feds had to cut rates by 1.83% and the sloshing is still below January 17.

Another interesting exercise is to count bullets. Bernanke, as a good cowboy in old western had 19 bullets. So far he fired 9, 10 more remain in his gun. He is expected to fire 4 more bullets at the next 3 meetings and only 6 will be left for the remaining of the downturn. Double ouch!