Bank Cut Reserves to 0.

[Chris Seveney]

While I am not surprised rates were cut to zero - bank reserves were also cut to zero as well.

For those that are not familiar with lending, a major component to the crisis a decade ago was banks had to liquidate assets because they did not have sufficient reserves.

Love to get others thoughts on this. As a note investor when banks are required to increase their reserves it could lead to an influx of distressed debt hitting the market.

What are your thoughts?

[Will G.]

An incredible response from the fed and shows the danger the historic debt bubble they have blown is in. If it starts to come unglued (defaults) harry dent will be right, $600 gold, 80% off the stock market, and real estate cut in half...so pray they have the tools to restore confidence