We've scratched the surface a bit herein the past few weeks on what can only be termed as a serious liquidity issue in the overnight funding (repo) market. While some suggest that it's not serious, that it's purely technical, and so on, well, when a technical glitch requires half a trillion in fresh bucks to simply keep liquidity flowing (as opposed to actually fixing the problem) I think we can get away with calling it serious.
As for the stock market -- which is seeing continued positive momentum in the pre-market this morning -- all it sees is Fed money printing, and it loves it. Hates it when it ends.
Here's a 5 minute clip featuring analyst Jim Bianco on the topic, and how it reminds him of the Fed intervention around Y2K: