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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (1045)	9/25/2003 5:49:54 PM
From: yard_man	Read Replies (2) \| Respond to of 110194

guess the stuffing with our debt had to go to an extreme -- probably not there yet. +.03 -- Good for us on BEARX -- I know you don't like the gold in there, but it made for a lot les painful entry for me and I know it's less than a quarter of the fund, something they'll only do short term -- more gold in that other one, I think ...

To: russwinter who wrote (1045)	9/25/2003 7:52:13 PM
From: russwinter	Respond to of 110194

Followup on the Rueters report of foreign holders increasing a whopping 8.6b this week (ending Wed.). I was glancing at the Barron's fed data, and they (foreigners) have been averaging 2.93b week over the last year, so this a very big increase. So theorizing about why this is happening and the nature of this bond rally. They must have felt the need to push a little harder leading into the G7 announcement fearing that the news might cause a USD freefall, and then followed up after the news with some extraordinary intervention that has really forced down yields because of the sudden extra need for intervention. Obviously the Asians aren't very discriminating on price, they just need to find USD assets to buy (and quickly) to stave of these large currency declines? Now if next week, and the week after it's still this high, that would suggest that the pressure on the USD is overwhelming. In otherwords the more the underlying pressure on the USD, the more US debt the Asians would be forced to buy just to keep an orderly decline. So it looks like the world is caught even more perversely into this sick, strange, very dysfunctional circle jerk. Of course what's really a classic is that the Fed comes in and adds net 10b in repos so far this week to "help" the Asians with this currency stabilization operation. bullandbearwise.com It's amazing how the Asians maintain their patience with this nonsense. They should be flagging "f--k you's", daily to the Americans for this egregious behavior. I suspect the real Asian reaction (withdrawal) to this may be hand. Some lessons need to be taught by our new mentors and superiors.