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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (66438)10/4/2003 5:25:04 PM
From: Real Man  Read Replies (1) of 94695
 
Until now. They don't have any bullets left, and their
credibility will vanish with any significant long-term
rates increase. This has been the most irresponsible Fed in
the history of United States. The next bear market leg will
prove that the Fed no longer has control over the bond
market. This has not happened for a while, but in the 80-s
there were folks called "bond vigilanties", who
sold bonds when they smelled excessive printing and
currency weakness. I believe these folks are about to
re-appear again.

Since the market believes "don't fight the Fed" 100%, it
will be quite a shock to learn that the Fed can't turn
back the bond and currency markets. This is the shock that
will ultimately lead to derivative collapse in the credit
markets, and Nasdaq in double (yes, double) digits
(briefly) -ng-

I think Dollar-Yen may be the Catalyst for intensified bond
selling. BOJ has spent all available funds.
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