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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (31262)	5/4/2000 5:17:00 PM
From: pater tenebrarum	Respond to of 42523

don't worry...sentiment is plumbing fresh depths of complacency as it were. that said, i agree that any bit of good news would rally the market a bit. but i think if that were to happen, it would only set us up for more selling relatively soon. there's not enough cash out there. the margined clowns that weren't wiped out are still margined and the generals haven't been shot yet. that's needed to put in a bottom. otoh, Al the printer is doing what he does best, i.e. he keeps the press cranked at full speed. for a strong market decline you simply NEED a bit of monetary contraction. you don't get that with the puny hikes Al has instituted. he isn't tight at all in real terms. at 5,6% annualized CPI inflation under the current BLS methodology his real funds rate is a mere 0,4%. considering that inflation is probably higher than the official figures suggest, the real funds rate is probably negative. otherwise you wouldn't have completely out of control credit demand at the current rate. borrowers simply know it's a no-lose situation for them.