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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Fiscally Conservative who wrote (13198)6/13/2012 11:54:13 AM
From: Hawkmoon2 Recommendations  Read Replies (2) of 33421
 
I just believe the Fed has it's hands tied right now.. People are scared by what is transpiring in Europe and the consequences it will have here and around the world (capital flight and deflation).

So anything the Fed does domestically will be likely have little effect. Lowering rates doesn't help because capital flight is already accomplishing that. Providing FX swaps against the Euro will likely fail because the Euro is going to crash further from that capital flight and dissolution of the EU. It's like throwing spit--balls into a hurricane of fleeing capital.

Hawk
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