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

To: ild who wrote (24173)	1/7/2005 1:36:59 PM
From: ild	Respond to of 110194

Date: Fri Jan 07 2005 12:35 trotsky (Aurum@mystery) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved not much of a mystery imo. there are hundreds of hedge funds registered on the Caymans, and every major financial institution has subsidiaries registered in the Carribean tax havens. the big trading volumes emanating from the Carribean iow are a tax avoidance strategy. Nelson Hultberg if i recall correctly simply made up that 'rumor' you speak of out of whole cloth. as usual with these conspiracy theories, there's not one shred of evidence. Date: Fri Jan 07 2005 12:23 trotsky (frustrated@Fed buying bonds) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved it sometimes buys longer dated paper in coupon passes ( permanent additions to the money supply ) . not really a big factor in the bond market overall though - these buys are only operations aimed at influencing the level of liquidity in the domestic banking system. the Fed's balance sheet isn't a secret. you can look for yourself how many bonds they buy. no unusual monetization efforts in evidence thus far - of course that may happen at some point in the future, but it hasn't yet. Date: Fri Jan 07 2005 12:17 trotsky (frustrated@more than meets the eye) ID#248269: Copyright © 2002 trotsky/Kitco Inc. All rights reserved well, it's true that there's more to the hikes than meets the eye. but i think the major motivation is the gathering of ammunition for the upcoming slump in housing and consequently consumer spending. i don't think they worry so much about foreign inflows. it's well known that those inflows are needed, but there's also widespread conviction that they're not endangered.