Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Rarebird who wrote (74095)	11/15/2006 9:45:03 AM
From: Real Man	Read Replies (1) \| Respond to of 110194

Message 23000384 That's not an options rally. All is well while the 10-year rates are manipulated lower and the dollar higher. We are going higher, maybe a temporary 2 point setback for the SP here. But, to understand that, one has to recognize the fact that these markets are managed -g- June decline was a consequence of 10-year rates breaking out, and the dollar dump. This threatened the end of the regime - once the dollar starts to get severely dumped, the Fed's ``games'' with fiat currency are over. Bonds and currencies are harder to manage through derivatives, cause these are derivative markets. So, stocks were dumped temporarily to create a safety bid under the bond market, as it has been done on numerous occasions in the past. Commodities were crashed, and the fake "no inflation" reports were rolled out. The bond market was saved. This is not the case now - 10 year bonds are well bid, spreads of junk over treasuries are non-existent. So, no - stocks are not going lower. -g- If anything, the bond market is more important than the stock market. Every time the bond market is in trouble, the Fed fires up the printing press via securities lending and coupon passes.