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

To: Crimson Ghost who wrote (26972)	2/22/2005 3:15:45 PM
From: Skywatcher	Respond to of 110194

ADIOS DOW

To: Crimson Ghost who wrote (26972)	2/22/2005 3:28:38 PM
From: ild	Read Replies (2) \| Respond to of 110194

I'd think that FOMC Minutes tomorrow will have new harsh language towards RE speculators. The Fed is in the box. They can only jawbone as they are afraid to pop the bubble(s) with real rate hikes.

To: Crimson Ghost who wrote (26972)	2/22/2005 4:18:20 PM
From: ild	Respond to of 110194

Weakness in USD didn't help stocks today.

To: Crimson Ghost who wrote (26972)	2/23/2005 5:05:09 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 110194

the Fed's choices: kill the financial asset bubbles (with higher short rates, flatter yield curve) or CONTINUE killing the real economy, as it has done since 2001 (with lower USDollar and higher cost strucutre universally) I have been calling it "Sophie's Choice" since it is more deadly choice than a mere "Catch 22" the big HUH has been that long rates have not risen I think it is a big mistake to conclude it is ALL due to Asian trade surplus recycle no way imho it is a key signal that new US$ monetary expansion has gone to stupid destinations like household debt, room additions, vacations, lifestyle and to mortgages for overpriced homes VERY LITTLE HAS GONE TO US CORP BUSINESS EXPANSION, JOB CREATION the less than stupid destination has been commodity speculation which hurts all profit margins and household budgets imho secular deflation has been greatly aided by the US Fed Reflation initiative ONE CANNOT LEAVE OUT THE OTHER MASSIVE CYCLE WE PRINT MONEY OR EXTEND CREDIT TO PURCHASE ASIAN GOODS THEY TAKE SURPLUSES AND OVER-BUILD FACTORIES ASIAN FINISHED GOODS HIT OUR SHORES THE USA MIGHT SEE SOME RISING PRICES, BUT WE ARE NOT IN CONTROL OUR EXPORTED INFLATION RETURNS TO THE USA AS A DEFLATIONARY FORCE E.G. LITTLE PRICING POWER, LOST CONTROL OF PRICING, EXPORTED JOBS, LOST INCOME, DOMESTIC FIRMS LIQUIDATE OUTPUT the secular deflation story is not well understood it is almost totally disregarded, yet incredibly powerful secular deflation is a natural phenomenon in response monetary inflation is the human reaction in distressed desperation after the species realizes "MASSIVE FUCHUP" / jim