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


To: westpacific who wrote (72174)10/17/2006 5:05:17 AM
From: Real Man  Read Replies (3) | Respond to of 110194
 
All-time high for the DOW does not feel like an October crash.
Rather, it feels like 1999. Eventually, you could be right,
unless the dollar crashes (I expect that) and we have
hyperinflation due to foreigners selling dollars and our
debt. Hyperinflation is much worse than deflation that
happened in the 30-s. Stocks will go up in dollar terms
These markets can remain irrational a lot longer than a bear
can remain solvent. -g-

I expect the Fed and minions will support the stock market
through SP futures until the confidence in the dollar
evaporates. So far, the dollar is holding up, and the bond
market is holding its ground. So, no crash for now.
Watch Yen and 10-year rates before the crisis. Yen should
surge, and so should the rates. JMHO. Until then, as Russ says,
Wash, Rinse, Repeat.

It's a costly mistake to think this Fed will not unleash the
full power of the printing press on these markets, should
they fall just a little bit. Boomers pensions are in these
markets. The government does not want to be responsible for
paying these.