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

To: Knighty Tin who wrote (23777)	2/17/2005 10:12:43 AM
From: Chispas	Read Replies (1) \| Respond to of 116555

Greenspan...Does Anyone Still Listen? ...... .... ... .... ... I have a confession to make. Perhaps I'm not the only one but I must admit that I don't even bother to follow what Alan Greenspan says any longer. I know this is a strange thing to admit because I try to follow most of the significant new concerning the financial markets. I'm not sure when the cross-over began but at some point Greenspan went from perhaps 50% bull manure to 100% bull manure. Maybe it began after the infamous "Irrational Exuberance" episode way back in 1996. That might be the last time Greenspan ever attempted to tell it straight. Now Greenspan almost always says what Wall Street and the White House wants to hear. No more little surprises like pointing out that a bubble might be developing. Nope. The new theme is that no matter what is happening it is expected and under control by the Federal Reserve. We are supposed to believe that the all mighty Fed has everything in hand. Exploding debts and deficits are not really a problem. Nor are high oil prices. A real estate bubble? Not a problem. This whole aura of complacency is draped over the financial markets right now. Trading has been uninspiring despite the recent rally. The Dow has moved back to where it was at the end of last year. The other major averages have been lagging. The Nasdaq is still down over 4% for the year. Volume has been decent but breadth has not been that impressive. When it seems like everything is a-ok that has been the time to worry the most. Everyone is wondering if the Dow is going to make a stab at 11,000 and it is possible given the index's proximity to the milestone. At the same time, this would be a logical place for a reversal. With volatility low and bullishness high there can't be too many folks on the short side at the moment. fiendbear.com