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

To: russwinter who wrote (9667)	7/21/2004 11:11:48 PM
From: mishedlo	Read Replies (1) \| Respond to of 116555

4-5%? Is that all. How about factoring in techies that were making 100K and are now unemployed or flipping burgers or working part time, etc etc etc. Did you hear Greenspans latest: Today he said that the carry trade was largely unwound and that he would act to deflate it if there was a bubble in the carry trade. WTF Isn't this the same idiot that said bubbles could only be seen in hindsight? And isn't this the same idiot that said there was no bubble in housing? And finally, how the fck would he know if there was abubble in housing or the carry trade anyway if bubbles could only be seen in hindsight? I was actually shocked by his speech. I was sure he would say his usual inflation is low, it will be measured but if necessary he would pull a cat out of his ass and perform whatever miracles were needed to keep thing humming. But no... He warned about inflation, said jobs were strong and the market could take multiple hikes. WTF? This market is dieing on one lousy 25 bp hike. What next? Here is my take. I think Greenspan was actually stupid enough to think he could talk the markets up by saying the economy was strong and could take it. Trying to talk companies into hiring by saying the economy was strong and in self sustaining recovery. Either that or the idiot is delusional and really thinks he can pull a live cat out of his ass if he has to. The third possibility that I do not dismiss is that his banker buddies know exactly what he is going to do, in advance and that after having rescued C and JPM from a derrivative collpse with the carry trade, and now letting them know it is safe to short bonds, he really does not give a sht about the little guys he talked into variable rate loans and intends to get serious about inflation. My actual best guess is some sort of combination of the above. What do you think is going on. He certainly managed to spook both the stock and bond markets and I doubt that was his intention. Mish