And so did the Yen, the Swissy, the D-Mark, the Euro, the British Pound, spot gold and gold futures, etc.
Why? Because the surprise lowering of the discount rate and the overnight lending rate indicates that something is wrong in paradise. What? Who knows. But it will become clear sooner rather than later. AG is in the process of using up the last bit of ammunition in his arsenal in order to keep the bubble from bursting. Go back to 1990 and look at the Japanese Nikki Index. That bubble topped out above 38,000. Look at it now.
Greenspan has tipped his hand as to the true gravity of the situation facing the international economy. He is using the last weapon at his command in an attempt to reliquify the system. Will the others follow suit? Will Britian lower its interest rates? Will Germany? Will the Euro powers? Will Japan? Hah! Japan's interest rates are .025% and what has that got them? Hedge funds flocking to Japan, borrowing Yen to buy US Bonds, US stocks, hedging them to the hilt, shorting gold, then going belly up when Japan repatriates the Yen in an attempt to refloat its economy.
Don't let the sucker rallies all over the world fool you. The dealers, market makers, bankers, are selling into this rally like mad. |
