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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures -- Ignore unavailable to you. Want to Upgrade?


To: Joe Smith who wrote (8842)12/27/2005 3:05:07 PM
From: Real Man  Read Replies (1) | Respond to of 12411
 
The short end of the bond market is set by the Fed, but
the long end supposedly is not manipulated. Strange market
reaction to strong GDP data. Didn't spook it one bit.



To: Joe Smith who wrote (8842)12/27/2005 10:50:40 PM
From: robert b furman  Respond to of 12411
 
HI Joe and Realman,

I'm just a position stock holder who tries to observe and learn.

In the past,Starting from about January 2000,I've noticed the fed almost always follows the bond markets lead in rate changes - excepting this last blast of increases,as the bond market has quite openly said rates need to be lower in the face of your raises.

Given the almost complete belief that globalization has decimated inflation, and an existing bloat of dollars everywhere,isn't the fed about ready to stop losing credibility regarding further rate increases.

What surprises me is the Dollars runup,at the same time. Record deficits of all kinds, suggest inflation /devaluation of the Dolllar should be imminent, yet with globalization and peace continuing - perhaps some new powers in the hood?

No one wants to admit it, but Israel and Palestine are no longer warring (in a relative way),Democracy appears to be prospering in Jordan and Iraq - in relative way.

Is there an undercurrent of bullish sentiment (geopolitically)that is overiding the "front" put out there by a fed that is no longer the pace maker of economic events?

I'm just watching and wondering - all viewpoints encouraged!

Bob