Last Tuesday, the Fed opened another $82 billion in short-term liquidity to the repo markets. This followed $60.7 billion in aid on Monday.
According to the Fed’s calculations, it has offered $4.2 trillion in props to markets as of 9 January. On 15 January, $229.5 billion of the short-term loans were outstanding.
The Fed also continues to buy Treasury bills to keep the markets in cash.
As long as the cheap money continues to flow into the equity markets, minus a wild card event, equities while overvalued, will not sink into correction territory.
