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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?


To: Perspective who wrote (2254)6/9/2003 6:45:06 PM
From: NOW  Respond to of 4912
 
Inflating away 44 trillion will be some trick:
aei.org



To: Perspective who wrote (2254)6/9/2003 8:16:08 PM
From: LLCF  Respond to of 4912
 
<The Fed will do this (foster hyperinflation) before it will permit the economy to weaken due to debtors backing off their demand.>

Agreed...

1.) They're fighting deflation, even though there IS inflation.
2.) The message from the Fed is they want MORE inflation.
3.) They want tighter credit spreads [as you've pointed out] through the carry trade, once again enriching the banksters... until it doesn't.
4.) The fed is essentially trying to manipulate the yeild curve in any way they can.

On the Bloomberg:

"If asset prices don't adjust sufficiently to stimulate spending, then the open market purchases of long term Treasuries in sizeable quantities can move term premiums lower."- Vincent Reinhardt

DAK



To: Perspective who wrote (2254)6/9/2003 10:02:39 PM
From: LLCF  Respond to of 4912
 
BTW, speaking of yeild curve, FWIW last I heard the fed funds futures market had nearly a 100% chance of a 25bps cut when the fed meets... up from 50% a week earlier.

DAK