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

To: futures speculator who wrote (36507)	7/21/2005 4:00:40 PM
From: mishedlo	Read Replies (3) \| Respond to of 110194

VIX is explainable. There are numerous new funds both hedge funds and mutual funds that are set up to make money selling time premium. billions and billions of dollars have been flowing into those funds. They keep selling round after round of options. As a result volatility drops. Index volatility is also down because as some stocks go up, other go down and that has been smoothing out index moves (for the most part). Indicies (especially the dow has been in a very narrow range). There is no evidence of PPT intervention here. In fact, I think the FED wants the housing and stock bubbles to deflate a bit, but not pop. He seems hell bent on raising rates until something breaks. Mish

To: futures speculator who wrote (36507)	7/21/2005 4:37:55 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

Who knows, if some day a new FED-Deepthroat spills the beans, we might find out that Fed/ESF has been "reflating" even more than people thought, monetizing debt and probably bought stocks big too, aka Greenspan-put, aka VIX <10. Sounds like fraud of epic proportions. And think of how many millions of man-hours have been wasted by economists and commentators as well as wasted newspaper ink trying to explain the unexplainable - conundrum of low interest rates and stock market complacency. I knew something was wrong with the bond market a while ago when PPI printed 1.8 and bonds dropped 3 ticks. In mid 90's they would have been limit down.