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


To: SouthFloridaGuy who wrote (67798)8/9/2006 2:26:18 PM
From: GST  Read Replies (1) | Respond to of 110194
 
<They would not cut rates into higher oil prices> On the contrary, they will not only cut rates if oil prices soar -- they will cut them aggressively. Nothing slows the economy like a rise in oil. It is more powerful than a rise in interest rates.



To: SouthFloridaGuy who wrote (67798)8/9/2006 5:53:02 PM
From: mishedlo  Read Replies (6) | Respond to of 110194
 
oil has noting to do with inflation
NOTHING

I suppose if Saudi Arabia was overthrown tomorrow and crude shot up to $300 a barrel you would awant the Fed to hike to cut demand

Would 8% interest rates bring down the price?
How about 18%

Think of the absurdity of it.
No wonder this country is so fucked. Everyone thinks like the Fed.

Mish



To: SouthFloridaGuy who wrote (67798)8/9/2006 6:49:03 PM
From: yard_man  Respond to of 110194
 
>>They would not cut rates into higher oil prices, especially since a lot of the move in oil is liquidity driven<<

what means liquidity driven -- something outside of normal supply and demand??

I keep watching these jokers on television wrap themselves in knots. There is the speculative premium. the terrorism premium. bla bla bla ...

There is a numeric value of paper or entries on a computer screen that folks are willing to exchange for a barrel. The rest is BS and make-believe.