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

To: ild who wrote (46078)	11/24/2005 10:38:07 AM
From: russwinter	Respond to of 110194

Good discussion of underlying credit and liquidity(overrated) conditions and the health of the "year end rally"(contrived?): financialsense.com Note: Repo activity picked up noticeably last week, as has FCB buying. Combined with the latest perceived or imagined Wizard's EZ talk, that provided quite a burst of short term fuel. The 64k question, is that sustainable? If the Fed actually goes to 4.25% in two weeks (), some of that will have to be drained off, unless demand for capital (for housing and elsewhere) really starts to fall off. Is the return of the FCBs to the increasingly large need auctions a one trick pony or a new trend? Carl Swenlin's latest: financialsense.com () To me it seems 4.25% (perhaps the final?)and language change is being telegraphed. So when it happens (along with ECB rate increases) will that really be so bullish? That's a level that will continue to hit the housing and consumer market hard, even if that's it. Their winter energy bills haven't gone away either, and can another energy spike be ruled out (commercials are long)? Further are the hedge funds and institutions going to ramp this all the way to year end just for the purpose of manipulating for bonuses? Is life on Wall Street really that easy, or will some big players peal off for the exits early?