This gets confusing quickly, and my comment is an oversimplification, but: http://www.slate.com/articles/news_and_politics/explainer/2008/10/596_trillion.html
So essentially, any movement in the money markets is amplified by a factor of about 5?
I’m not an economist, but this basically seems like a good idea, if we assume that the average direction of the market is up.
This gets confusing quickly, and my comment is an oversimplification, but: http://www.slate.com/articles/news_and_politics/explainer/2008/10/596_trillion.html
So essentially, any movement in the money markets is amplified by a factor of about 5?
I’m not an economist, but this basically seems like a good idea, if we assume that the average direction of the market is up.