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

To: UncleBigs who wrote (48985)	1/7/2006 12:13:09 PM
From: westpacific	Read Replies (2) \| Respond to of 110194

Bigs, will be interesting to see if this last injection takes the market much higher than here. If it does not, it will say a lot. If you look at the charts, the FEDs only ammo now is these liquidity injections with the PPT buying the market. Do not forget also - credit created out of thin air, they will use the Carib banks again to buy the curve (via their secret offshore accounts), their own debt, the market. They did it before, they will do it again. We will monitor this as well. It is getting less and less effective. Lets see how far they get on this latest - it will tell us a lot. And together lets figure it out. Lots of what you say is so on the mark, thanks for posting here. Agree this bust will be worse, but it must happen and I hope the FED knows that. The other outcome is so much worst. FYI - my wife and I have a theory,,,,,,(do not mean to hurt anyone in saying this), folks with facial hair, beards are the worst to deal with. Total introverts, we have studied this and 90% of the time it is correct. Our new FED chairman could not have been a worse choice and I know he is going to mess it all up just based on this one observation! A FED CHAIRMAN WITH A BEARD - total professor economist.....no feet in the real world....not that is scary. West

To: UncleBigs who wrote (48985)	1/7/2006 3:09:38 PM
From: kris b	Respond to of 110194

"The Fed can use the printing press, but that would also cause capital flight and a monetary collapse" I'll be the first one to dump my $ US`. "The Fed is in a terrible box." No way out. It is either inflationary or deflationary collapse. Which one will they choose? There is no place for soft landing. Too much speculation and leverage. Kris

To: UncleBigs who wrote (48985)	1/7/2006 3:49:12 PM
From: GST	Read Replies (1) \| Respond to of 110194

<We are dependent on foreign capital flows and they will flee if the Fed gets too aggressive.> They will flee when our growth stops -- no matter what the Fed does... Now ask yourself this question: What will be the impact on us when they "flee". Ask yourself this question seriously -- ask it three times -- think deeply about the implications, because this is THE key to our economic future. Our future is NOT in the hands of the Fed. That is what few here seem willing to fathom.

To: UncleBigs who wrote (48985)	1/7/2006 7:49:33 PM
From: Claude Cormier	Respond to of 110194

In the 1970's, monetary authorities waited till 20%+ interest rates and inflation before they decided to act and stop the movement. They did, after a deep but short recession, the good times were rolling again. Logically, they will believe this time that they have plenty of time before they must start to tighten. They will say "We can do it again" withot collapsing the system. Bernanke will have no problem printing until inflation double or triple. That will still be better than the risk of depression. The question that should be on our mind is "Will the money printing work?" Not "Will they print money? After Katrina... they sent loaded credit cards to the poor souls who lost their homes. If the RE bubble start deflating, maybe they will send RMPs (Rescue mortgage payments) to the lenders so to keep the system afloat <g>.