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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: UnBelievable who wrote (253259)7/31/2003 11:46:58 AM
From: Haim R. Branisteanu  Read Replies (1) of 436258
 
The FED openly said so that they will go in and do it. So why wonder.

IMHO since the war in Iraq and the slide in GWB popularity there is a massive manipulation of financial markets with punishments and retributions mostly between Europe and the US.

The FED feeds the public with false information from warnings about deflation only to reverse itself, to intervention by "unconventional means" in the financial markets indirectly prompting wide swings in FX markets threaten Europe and later China. In response, Europe CB is recommending to sell Agency debt recently etc.

The whole thing will end up very badly IMHO and volatility will only increase. $500 billion Trade Deficit and 4.5% of GDP Budget Deficit will not go away. Treasuries will inch up until the market will realize that there is no real consumer demand and new jobs. The home equity candy is gone as a fast cash & liquidity source.

Fact is that Consumer Confidence which was once highly regarded was negative and markets ignored it. Same with sales of existing homes which represent around 80% of home sales was down.

Hour worked barely nudged up even that defense spending rose 7.5% and a lot of new orders in the ISM report are defense related. Same apply to inventory

We are feed fantasy stories, and with smoke and mirrors to make believe the real economy is improving, not to mention that most consumers are cashed out a softening in the RE market has begun and public and private debt is over 3.5 times GDP
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