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

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To: yard_man who wrote (28672)3/15/2005 5:23:59 PM
From: russwinter  Read Replies (6) of 110194
 
A little shock treatment now might be what the doctor ordered. Raise the Fed funds 50 bps on 3/22, and 25 more on 5/3, and then just threaten more, but stop. Might actually work. It would hit speculators hard, cool the housing Bubble, and be a step towards ending the Fed's reputation as a slut and easy lay, and in turn support the USD.

Then people might just put money into six month T-bills at 3.75%, and two years at 4.25%, and call it a day instead of chasing every maladjusted POS on the planet. Savings, what a novel concept. Half the malls in America need to be emptied out anyway. And a crowd of Bullies getting wiped out, who gives a shit. Die, bully! The other choice is to keep up this measured nonsense until Mr. Creosote and Pig Men sandpaper everybody to death in speculation and maladjustment, as they already really have. In the end they will end up tightening a lot more with measured, than with shock.
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