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

To: Jim Willie CB who wrote (6919)	2/4/2004 11:59:13 AM
From: mishedlo	Read Replies (3) \| Respond to of 110194

are you expecting (like me) G-7 clear US$ support ? What I am saying is I had nice profits and I took them. ggg As for "clear support" I doubt it for two reasons. 1) If it comes it will be lip service 2) The US will not agree to hike 3) The markets will read this in and the selloff from any bounce might be faster than if they did not mettle at all The only clear support, Europe has to do itself. Cut rates. Lip service will not do much. Finally I am not sure we get even lip service other than Snow repeating his assinine committment to a strong US $ whose definition has nothing whatsoever to do with strong at all. I believe the US wants a slow steady decline in the US$. Either that, or they do not care if there is a slow deteriation in the US$. The US$ is weak because of balance of trade issues and spending issues and that is not going to be solved no matter how high the US jacks interest rates. The US$ is toast but we can not come out and say that. If the US$ bounces and Europe does not cut, I think shorts will hammer it. To me lip service is not "clear support" and I am not sure we even get much agreement on lip service. Show me a cut in Europe and I will show you strong action. Otherwise it will be useless after 3 days or less. Mish