Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: russwinter who wrote (25310)	1/25/2005 11:12:04 PM
From: gregor_us	Respond to of 110194

Does the Fed Really Believe They are Not Pushing on a String? Based on your re-cap of their history, of how they wait for blow-ups, perhaps not. Perhaps the action in 5,10,and 30 --especially the latter two (and let's just leave out the matter of supply, and CB holdings for a moment)--just isn't enough feedback for them. Ha ha. For the first time I understand fully the opinion that says having a Fed in the first place is maybe not such a good idea. Best,LP

To: russwinter who wrote (25310)	1/26/2005 1:21:12 AM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 110194

<<however I feel if they were truly responsible, it would have good effect to do so, to hand speculators and wild men their heads, way overdue.>> Absolutely, I agree... <<More likely they will just do the standard 25 bps the next two meetings (maybe three tops), and then the economy will fall off a cliff, and there will be some blow up along the lines listed below that will make them stop or pause>> Agree with the first 25, after that they may be too scared to push it any further. It's just a question of who exactly is gonna be found swimming around without a bathing suit when the tide goes out.....<G>

To: russwinter who wrote (25310)	1/26/2005 8:53:39 AM
From: Ramsey Su	Read Replies (5) \| Respond to of 110194

Russ, why do you think the Feds want to be in such a hurry to raise rates? As Japan has demonstrated, allowing time to deflate their real estate bubble did not turn out too badly. They sat on almost zero interest for how many years? While I think that Greenspan's judgement has always been driven by his ego, I do not think he is stupid. He got to be worried about the consequences of a hard landing in just about everything if they raised rates too quickly. So far, all his jawboning efforts had failed. (that must be a big dent to his ego that the market no longer listen to him) He tried to talk the market out of carry trades - failed. He tried to talk up the yield curve - failed. Ramsey