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

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To: ild who wrote (60125)5/2/2006 2:51:55 PM
From: ild  Read Replies (2) of 110194
 
Date: Tue May 02 2006 13:44
trotsky (@Bernanke) ID#248269:
Copyright © 2002 trotsky/Kitco Inc. All rights reserved
as to what the poor misunderstood monetary bureaucrat-in-chief REALLY meant to say , here's the translation: "i will hike rates until declines in the stock and commodity markets are well underway".
this is the usual modus operandi, as economic data only begin to deteriorate well AFTER the markets have already begun to discount a slowdown.
the markets aren't in the mood yet, but eventually the above message will likely get through.
one only needs to look at OTHER stock market rallies that coincided with a rate hike cycle ( e.g. 1987, and '99-'00 ) - the hikes generally didn't matter until one day they did. as soon as the markets puked, the direction of the FF rate reversed.
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