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

To: SeaViewer who wrote (9698)	3/8/2004 12:58:28 PM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 110194

my speculation is that the FX market is preparing itself for a FED rate hike. The mere fact that the UDX recovered so strongly can not attributed only to the market being short the USD

To: SeaViewer who wrote (9698)	3/8/2004 1:04:00 PM
From: mishedlo	Respond to of 110194

Inflation is in a full blown out phase. Feds is way behind curve. If AG&Co. don't raise fund rate quickly, a lot of small- and medium-size manufactures will go under as they can't absorb the high cost. So little manufacturing is done here that the job loss for protecting jobs that are probably doomed anyway is no where near the job loss that would result from a housing collapse if rates are hiked. Quite simply it is way way late to be hiking and the FED is trapped. Look at treasuries and eurodollars today. I expected some consolodation. We got none. Job market is simply too too weak to hike. As I pointed out to Russ, using the PPI as the most important indicator is not correct. Mish