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Strategies & Market Trends : Ride the Tiger with CD

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To: sporky who wrote (88692)8/17/2007 9:44:10 AM
From: kacy_in_LA  Read Replies (1) of 313406
 
In recent history (since the Volker years) the Fed has and will continue to max pain the shorts, which is another reason why buying into extreme panic always works.

IMHO, and from the Feds view, there is no upside to being symmetric when the short speculators are trying to crash the system. They (the shorts) would have been better served to slowly bring the market down so that perceptions could have adjusted gradually. But, the smell of blood was too strong to avoid a feeding frenzy.

The Fed will never stand aside and allow the structural integrity of the financial system to be called into public question when they still have bullets. And, given where rates currently are, they have plenty of bullets to use.
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