Investors are pulling their money from U.S.
, PBS' Nightly
. Over the past quarter, they took $75 billion out of their
domestic mutual funds, correspondent Erika Miller stated, a massive
figure which is actually higher than the amount withdrawn at the
peak of the financial crisis, after Lehman Brothers imploded and
down with it.
"When we're getting close to a market bottom, the phone
starts ringing off the hook and our clients want us to sell
everything," Bruce McCain,the chief
strategist at KeyCorp, told
last week. "Market bottoms are less about an improvement in the
fundamental situation, whether the
or outlook for
, and a lot more about getting rid of all the anxious investors."
Meanwhile, the Federal Reserve Open Market comittee
its decision to support the economy by extending the average
maturity of its Treasury
holdings. In layman's terms, that means selling $400 billion of
with shorter maturities (according to the Fed, three years or less)
and buying an equivalent amount with longer maturities (six to 30
The goal of the so-called "Operation Twist" is to reduce
interest rates, which in theory should stimulate borrowing and
deliver a boost to investment and consumption.
More important to the average investor or consumer would be the
passage of the fiscal stimulus and tax plans presented by the White
House, but those stand little chance of passing a hostile,
Republican-controlled House of Representatives and a narrowly