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


To: zebra4o1 who wrote (56854)3/25/2006 6:23:35 PM
From: mishedlo  Read Replies (1) | Respond to of 110194
 
I believe that is correct thinking.

Mish



To: zebra4o1 who wrote (56854)3/26/2006 11:44:46 AM
From: Rarebird  Respond to of 110194
 
I doubt Bernanke will change the wording at his first FOMC meeting all that much from Greenspan's last FOMC meeting. The possibility of future rates hikes will still be ultimately tied to future economic data. So, the Fed will continue to speculate in regard to Fed Funds. More importantly, from an investor/trader standpoint, the Market still believes that the Fed is its Friend here and has its best interests at heart. Now that view may change down the road, but that's the reality at the moment.

Call it what you will, but these markets have given Bernanke a period of grace. How long will the honeymoon last?

Bernanke has put his reputation on the line by saying explicitly that the inversion of the yield curve is "different this time" in that it does not signal a recession down the road. So, Bernanke has provided the seeds for his own destruction or loss of credibility here if the US does enter a recessionary period.




To: zebra4o1 who wrote (56854)3/26/2006 1:50:14 PM
From: patron_anejo_por_favor  Read Replies (1) | Respond to of 110194
 
>>The Fed-is-done rally is happening right now.<<

Agree....look at commodities, small caps and pretty much everything else. Their rally speaks to a "Fed is done" script...