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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: NOW who wrote (24385)1/11/2005 7:27:46 AM
From: russwinter  Read Replies (2) of 110194
 
Of course my theory has always been (numerous posts) that the MoP tries to get a lot of "strutting like a rooster" thunder out of every little baby step rate increase they make. I certainly expect them to follow through on Feb. 2nd. And right now there is evidence they may be attempting to reign in the extreme money printing that went on throughout most of the fourth quarter and bring it more towards the trendline.

Whether they actually follow through beyond that is another question, and of course reflects on their credibility which clearly suffers from "cry wolf/Wizard of Oz syndrome". Personally I think we are at the point when the markets really unloads on them with a big Dollar dump if their talk isn't backed up with actions. Of course there are other players (our foreign creditors) who might really be the ones calling the shots now too. So I don't plan on guessing their real intent, but instead be like a parent who uses a pedophile uncle to babysit the kids, and will watch them like a hawk. So forget their words, focus on their OMO activities, track the foreign custodials, and watch the commercials positions in the interest rate complex.
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