AUTOHOME, Inc Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : AUTOHOME, Inc

ATHM 22.92

+3.5%

10:55 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TREND1 who wrote (9606)	5/19/1999 11:46:00 PM
From: ahhaha	Read Replies (1) of 29970

They don't need to control the long bond. They can let it flap in the wind. Long bond rates reflect expectations for future inflation. FED doesn't agree with what the market is saying about that. So the cost of funds to the government is high. Nothing to do with private sector borrowing costs which are determined by the interbank rate. FED has that fixed below the market. That is money supply growth leverage incarnate and with all these daily coupon passes and RP actions, you have absolutely no tightening bias. You have overt loosening bias and it has been going on for 4 years. This tightness bias is pure nonsense. They can't tighten at all. If they did, Japan would implode. The yen starts falling when the fiscal peanut money distributed by the BOJ starts running out, so FED must pump faster and hope the borders will continue to leak. Absolutely nothing effectively has been done to address Japan's banking problems which at one time were nominal but now have evolved to explosive potential. The postal savings money has been used to support the unresolved mess, so there are no further bailouts possible inside private Japan. Our FED is supporting what Japan neglects to do and Japan is happy to let us continue because such action lets them persist with their love affair with neo-mercantilism. Sooner or later the BOJ must resort in desperation to outright pumping to get their reserve base growth advancing. The desperation comes because American fairness hikes trade barriers. BOJ pumping would require that the FED stays out of the market which effectively tightens, but they can't do that because it threatens infinite and eternal prosperity which is mandated by law. The resolution is acceptance of inflation. A little inflation never hurt anyone just like a little drink. All of these decisions by smart central bankers and clever university old expert types are complete delusion and now there is no escape from disaster. I keep thinking about interest rates and high multiple stocks. Do you know of any? I'm sure those clever guys have it all calculated into a "soft landing". How clever are they since they can only play out the same old script. How Hegelian.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next