Just look at how they continued to reduce treasury holdings right into the crises. They were talking about complete collapse while shelving monetary policy and changing their approach to legislative. It reminds me of the HFT firms who provide large pools of liquidity, but unplugged their systems during the flash crash.

Dallas Fed President Richard Fisher said Tuesday he wanted the taper to be double the size it was — in other words, $20 billion instead of $10 billion. The Fed is still buying $75 billion worth of Treasurys- and mortgage-backed bonds each month. "But the important thing for me is that the committee began the process of slowing down the ballooning of our balance sheet, which at year-end exceeded $4 trillion. And we began-and I use that word deliberately, for we have more to do on this front-to clarify our intentions for managing the overnight money rate," he said in a speech to the National Association of Corporate Directors. Fisher, who this year is a voting member of the Federal Open Market Committee, stressed he would "not flinch" from continuing to reduce asset purchase even if a stock market correction were to ensue.



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