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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Fun-da-Mental#1 who wrote (35559)	12/21/1999 11:05:00 AM
From: pater tenebrarum	Respond to of 99985

Fun, i do not understand why the Fed is doing what it is doing at the moment. i only know what the effects of these actions are. in the ST, they inflate the stock market bubble beyond good and evil. in the LT it means that the U.S. is now one of 20 economies in the world susceptible to what S&P calls a 'credit bust'. for those who wonder what this means, it is what happened in Japan after their mania ended. as mentioned before, the Fed can not escape the bubble anymore, it is trapped by it. apparently it was decided to try an experiment: what happens, if we allow the bubble to inflate further instead of popping it? will Austrian theory prove correct and the whole system eventually collapse, or are we in a new era of ever rising stock prices, strong GDP, no inflation, etc. and can print money at will and in abundance? if the experiment fails, the taxpayers will pick up the tab, and Al.com's WS buddies will be bailed out. if the experiment succeeds, everybody will be happy anyway. the only parties who can't possibly lose, are the highly leveraged speculators and hedge funds, brokers, banks, etc. at least that's what they probably assume, based on easy Al's record. while i don't believe it is really necessary to conduct this experiment, as i believe the outcome is actually an inevitability cast in stone, it is still interesting to watch. how far can it actually go? we will find out, and the U.S. taxpayer stands ready to pay the piper when the time comes. regards, hb