With the banking system locked up suddenly banks are aggressively accessing the Fed in an effort to stay afloat.
Borrowing from the Fed's expanded discount window continues to skyrocket to new highs, reaching a total of $409.52 billion as fate of a proposed $700 billion plan aimed at repairing strained credit markets remained unclear.
That $409 billion drawn out of the window over the past week is a 50% spike higher, explains Dylan Ratigan.
In the last 3 weeks only $7 billion in company bonds have been issued. Typically the market would see $60 billion, explains Miller Tabak market strategist Tony Crecenzi on Fast Money. “We’ve never seen anything like it. When they say the credit markets are frozen it’s not just an expression. It’s the real deal.”
But don’t panic. The sky isn't falling. “People will catch up to the facts and the facts are the Fed is putting a gigantic amount of money into the system and the government is about to buy a lot of Tresurys, Crecenzi says. But first we’ll have to get through another few months of anxiety.”
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to firstname.lastname@example.org.
Trader disclosure: On Oct.2, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (UUP), (MSFT), (WMT); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (AAPL), (BAC), (MER), (MS); Seygem Asset Management Owns (FXI); Pete Najarian Owns (AAPL) And (AAPL) Puts; Pete Najarian Owns (GS) Call Spread; Pete Najarian Owns (MS) And (MS) Put Spread; Pete Najarian Owns (NCC) Call Spread; Pete Najarian Owns (RF) And Is Short (RF) Calls; Pete Najarian Owns (SPLS) Put Spread; Pete Najarian Owns (WB) Call Spread; Pete Najarian Owns (XLF) Call Spread; Finerman's Firm Owns (MSFT), (PM)
GE Is The Parent Company Of CNBC