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

To: russwinter who wrote (25330)	1/26/2005 9:55:02 AM
From: Ramsey Su	Respond to of 110194

Russ, yes, those are the textbook reasons to raise rates, which is something that greenspan should have done long ago. In fact, the Feds should never have done the Xtreme accommodating policies in the first place. Now they are kayaking upstream in a fast moving rapid, looking for a way to stop and rest without being washed right back down. I will repeat. Anything but a soft landing could cause systemic failure in just about every sector. Just imagine. Can the economy handle F and GM going down the same road as the airlines? Can the economy handle 1%, 5% or 10% of homeowners being upside down on their mortgage? Just like cutting rates the last few years created the undesired result of the real estate bubble and debt bubbles, raising rate now may have undesirable results than one can imagine. I opine that the stronger remedies for this economy are on the fiscal side. Cut that budget and it will relief a lot of pressure, but that may be too much to expect from the current administration. Ramsey

To: russwinter who wrote (25330)	1/26/2005 10:13:08 AM
From: BSGrinder	Read Replies (1) \| Respond to of 110194

Russ, reasons 1, 2, and 3 have never stopped the wild men at the Fed before. It's almost certainly reason 4, message from foreign creditors, that is stopping the printing presses, at least for a while. /BSG

To: russwinter who wrote (25330)	1/26/2005 11:09:36 AM
From: John Vosilla	Respond to of 110194

Russ, what I find so ironic is that corporate America was deemed out of control during the later years of the fiscally responsible Clinton years. Now we have everything else out of control now including our Republican administration and our Fed. The one exception appears to be the conservative policies of corporate America since the crash and Sarbanes-Oxley has resulted in their balance sheets being stronger now than ever. Stock prices of many small cap stocks are even selling at close to cash value again and I find it odd that M&A activity in this environment has not taken off. Maybe they see the same dire economic situation many of us see? Does Greenspan model this into his thinking process? If he does perhaps he will be more comfortable in continuing to tighten as long as the stock market averages do not collapse as the mantel gets passed from the consumer and housing to capital spending and industrial production..