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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 (75985)	12/18/2006 3:10:11 PM
From: jimmg	Read Replies (2) \| Respond to of 110194

<<<They need to shut down the Riskloves here and now, and fast!>>> The Fed has no intention of shutting down riskloves right now. They've directed the speculation exactly where they want it....in stocks. Until commodities rise substantially, long bonds sell off and/or the us dollar weakens, the Fed has a green light to print and the "riskloves" have a green light to speculate. The 6 coupon passes are a clear sign of the Fed's intention. They are responding preemptively to the housing bubble burst. They need to replace the lost wealth and the only mechanism is through the stock market. You seem to think that the Fed is going to do the right thing and induce a recession right now. There isn't a chance in hell that they will do that. We've long ago reached the point of no return. The Fed will keep the pedal to the metal as long as they possibly can. When employment starts to fall apart, long bonds sell off, dollar weakens, commodities spike, and credit spreads widen, then we know we are nearing checkmate. We're nowhere near that right now.