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

To: Crimson Ghost who wrote (13854)	5/13/2004 5:40:22 PM
From: russwinter	Read Replies (4) \| Respond to of 110194

More likely is the following scenario: Fed aggressively prints money to monetize debt, to keep the bond market from getting out of control and to fund the trillion dollar twin deficits. Effect initially is a sleepy heroin fix, but is followed quickly by a seizure and heart attack. Medical indicators to track: various markets, with a close eye on the USD, gold, rapidly escalating price inflation.

To: Crimson Ghost who wrote (13854)	5/13/2004 5:43:52 PM
From: yard_man	Read Replies (1) \| Respond to of 110194

I thought something even crazier -- how bout this: Fed does an intra-meeting raise in short rates -- .25 or .5 -- doesn't matter which -- to fight the rise in long rates. Market expects it -- initially stocks are set back but then begin to rally. Dollar drops, because it was the expectation of higher rates that was keeping it afloat -- so for a short period -- bonds, stocks and gold go up with the dollar going down then weakness becomes apparent, bonds rally more, but stocks go down and ... gold goes to the moon <g>