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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (20397)	6/13/2003 4:01:01 PM
From: Jim Willie CB	Read Replies (4) \| Respond to of 89467

not the war which is the distraction on this thread it is the politics of the war stocks should slide if rates are cut again we are entering the Liquidity Trap, and a strange US version invoking the Faulty Fed Model for stock valuation is the latest criminal duping underway directed at the public rates are dropping because of slowing economy yet they point to higher tolerated PEratios, since lower rates this is bull market thinking applied to a bear market bounce sad really, that so many investors are so desperate lower rates from the last year have slowed the economy now we face even lower rates the Fed is under incredible pressure now to cut rates the 3-month TBill yield is now under 1.0% yet the FedFunds micromanaged lunatic rate is 1.25% the Fed will probably cut if GreenScheissPaper does not, he will cause some bond market problems, as they go into reverse on the short end see how the Liquidity Trap draws us in ??? money exits stocks and goes into bonds with so much sidelined money, it has gone into stocks and bonds lately once rates are so low, the entire economy gears itself to those low rates then rates cannot rise again since higher rates would destroy: - govt borrowing costs - corporate borrowing costs - real estate (from mortgage rates) - stock valuations - derivative gearing (rates, spreads, swaps) WE MARCH INEXORABLY TOWARD ZERO !!! THEN COME THE SHOCK WAVES, FROM IMPORTED PRICE INFLATION AND FOREIGN BOND SELLING they wont sell until the bond bubble is finished expanding then come the Argentine shocks this is not not not not Japan / jim