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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: TH who wrote (6136)	5/11/2004 5:53:11 PM
From: yard_man	Read Replies (1) \| Respond to of 116555

when the markets go in the tank -- they may still raise rates, but they are going to FLOOD us with liquidity Buy gold now and beat the rush?? <g> hint: they never did care about the level of the dollar -- they were just throwing bones to the asians

To: TH who wrote (6136)	5/11/2004 5:57:24 PM
From: yard_man	Read Replies (2) \| Respond to of 116555

I'm not sure this part makes sense ... >>It is now very interesting to see the further monetary picture to develop. As it takes usually very long for an asset bubble to deflate (Japan !!), it is likely that the current environment for low FED Funds persists much longer as many observers can think of. Should the FED raise interest rates anyway, the situation would become actually much worse as then long term interests rise higher and depress M3 growth even more<< if short rates are raised it should calm the bond market and bring lower long term rates, no?? but he is right on the first part there, I think -- low Fed funds rate will persist for much longer than many think. If we do get a raise -- it will be undone, shortly thereafter -- and accompanied by a liquidity POUR.