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


To: Jim McMannis who wrote (61273)5/17/2006 7:56:50 PM
From: patron_anejo_por_favor  Respond to of 110194
 
I still think if the Fed really wants to cut the crap, they'd do a surprise intermeeting 50 bps rate INCREASE 15 minutes before the market closes on Thursday (prior to options expiration for futures). That would give the riskloves enough of a heart attack to knock the froth off of the cesspool....ERRRR, MARKET! It would go along way toward reestablishing Bernanke's credentials as an inflation fighter too. I'm sure he doesn't have the huevos to do it though.....

Put me in charge of the Fed, I'd go medieval on those a$$holes......



To: Jim McMannis who wrote (61273)5/17/2006 8:16:11 PM
From: mishedlo  Read Replies (2) | Respond to of 110194
 
What amazes me is that we've known inflation is rampant for years and the FEDs have been cooking the books. NOW, all of a sudden, looking for an excuse to take profits, the marketeers suddenly discover "inflation". Who ever thought a few 1/4 point hikes would get the FED in front of inflation? Like a 10 year bond at 5.17% was EVER going to slow anything down...
Talk to me at 8% or 10%.


I certainly agree with the first half of your post.
I violently disagree with the second half.
You are ignoring all of the people that essentially went on margin at 1% now looking at 5% payments on their houses.
Many if not most can not afford it. Fewer still will be able to afford it in the upcoming housing collpase and associated layoffs.

I have been on the sidelines of treasuries for quite some time. I am now, as of today officially bullish, but no I do not have any myself yet.

Mish