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

To: russwinter who wrote (67001)	7/28/2006 11:32:37 AM
From: John Vosilla	Respond to of 110194

'I was apparently wrong, financial markets love train wrecks, either that or totally fail to recognize one?' I guess all these feedback loops continue to work until either the long end rates breakout to the upside or we enter a serious recession? 1973-80 is coming but in a stagflation light version?

To: russwinter who wrote (67001)	7/28/2006 1:56:05 PM
From: benwood	Read Replies (1) \| Respond to of 110194

Russ, you should quit picking on Starbucks. A franchise opened up in the back of my minivan, and I couldn't be happier! <g> In the big picture, I don't think being year, or 14-months? early is much to worry about. I was mostly out of the Naz at 3800-4000 (about 12 months early). I sure slept better the next year when it popped off the tracks and plunged down the canyon. The sheeple will keep things afloat a while longer, methinks. My own canary in the coal mine (my father-in-law) squirms at what goes on with his equity mutual funds the past few years, but then shrugs and says, "What else can I do?" But he still does not want an answer. Some day he will, and that will be an important turning point.

To: russwinter who wrote (67001)	7/28/2006 3:06:47 PM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

financial markets love train wrecks, either that or totally fail to recognize one? It is all about liquidity. When a lot of bad news hits, like the other day when many consumer stocks blew up, that is exactly the time when the Fed turns the spigots wide open. Who knows, if 400 stocks in the SP500 blew up all in one day and all gapped down 10%, then the remaining 100 would enjoy a huge explosion to the upside since massive liquidity boost would keep the index unchanged and all the money would flow to those 100 stocks.