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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (70964)	5/23/2005 11:56:56 AM
From: Bid Buster	Read Replies (2) \| Respond to of 94695

For awhile they can, and then.......

To: William H Huebl who wrote (70964)	5/23/2005 1:56:38 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

It's not THAT hard. The stock market is much smaller than the currency market or the bond market. The "policy" of the Fed is nothing but manipulation of interest rates, i.e., the bond market. For Asian CBs it is manipulation of exchange rates, i.e., the currency market. In the past crashes happened, but now the derivative structure makes manipulation a lot easier. By the way, a coupon pass today + another HUGE 4.3 bln. securities lending. The stock market responded well to that last week. Exactly that behavior of the Fed (coupon passes and record long-term lending) happened during past stress, and it always worked to push stocks much higher. ny.frb.org