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

To: Mike Johnston who wrote (64905)	6/29/2006 6:09:30 PM
From: Perspective	Respond to of 110194

Could just be that the boyz saw the opportunity to jam it at EOQ, so they did. If so, this'll just be a one-day wonder. The Fed can't pause with markets still in bull mode, despite pending weakness in housing. The markets are just a tool they use to move the economy around. And despite the air pocket in some real estate markets, the economy as a whole is still moving at a pretty speedy clip. I say they keep tightening until broad cooling appears in the real economy and inflation, but keep teasing the markets with the "almost there" routine in order to keep the markets from dumping too low when the economy really does weaken. They'll say whatever doublespeak is necessary to talk the markets down on as smooth a glidepath as possible while they're trying to deliver the medicine to the rest of the economy. Remember, they don't get another shot at a tightening campaign for another four years because it will draw too close to the 2008 election. They gotta get it done, and now. BC