Money is scared now. Nobody seems to want to take any risk at this moment. Stock market plunged the past week after the Fed was not doing anything to stimulate the economy. What is Operation Twist about? The Fed announced that they are going to lower long term interest rates by selling shorter-term bonds and buying longer-term bond. The Operation will require US$400 bn to transact. The US$400 bn will not be printed but collected through the sale of bonds expiring within the next few years. And the US$400 bn will be used to purchased long-term bonds that last 6 to 30 years. Hence, there will not be new money circulating in the economy. In most investors/traders’ view, this is bad news and the once QE stimulated stock market can no longer sustain the bull run. Stocks tumbled Following the 2-day FOMC meeting with the disappointing announcement, stock market plunged ......