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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 (26734)	2/18/2005 7:51:39 PM
From: orkrious	Read Replies (1) \| Respond to of 110194

FWIW, from Lance Lewis tonight dailymarketsummary.com For those that asked about copper’s new high yesterday, I’ve been hearing for several months now from extremely well informed people within the copper market that there is plenty of copper around but that several large hedge funds are taking delivery of metal and trying to squeeze it. Most people try and chalk it up to Chinese demand, but they would be wrong. “Chinese demand” seems to have become a scapegoat for all wild commodity price movement of late. The fact is that the Chinese economy continues to slow. In fact, just last night we learned that China’s January industrial production fell to its slowest pace in 3 years.

To: russwinter who wrote (26734)	2/19/2005 10:10:22 AM
From: John Vosilla	Respond to of 110194

The main reason Greenspan has kept interest rates low it that he wants to keep people spending. His entire monetary policy has been designed to punish savings and encourage spending. What did he expect to happen when he dropped fed funds to 1.0%? Put simply, he wants people to spend because he wants to keep the bubble economy expanding. It seems that the chairman wants to have his economic cake and eat it too I wonder if below the surface the economic situation is this country is a lot worse than lead on to have rates that low for an extended period of time. I'm sure Greenspan was hoping for more new capital investment and innovation on the corporate side while at the same time being assured that continued consumer spending beyond its means coupled with the construction and housing boom makes the chances of a downturn in the near term impossible.