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


To: jimmg who wrote (76382)12/21/2006 9:59:01 PM
From: Real Man  Read Replies (1) | Respond to of 110194
 
They did not do that in 2004, or 2005, despite "skyrocketing
Christmas demand". Personally, I have a lot anecdotal evidence
of major hedge fund sucking performance and drastically
reduced funds flows since the Amaranth Advisors fiasco. They
just can't make money on THIS volativity and THESE spreads.
More Amaranths on the way? Some weird stuff happened
to spreads in the debt market recently, could topple a few
of these hedge funds. Perhaps, the reason for increased
printing?



To: jimmg who wrote (76382)12/22/2006 9:38:29 AM
From: russwinter  Read Replies (1) | Respond to of 110194
 
If this was just seasonal, all the Fed would have to do is push the TOMO to the high end of it's range, and then let it drain off in January. Instead they've injected large permanents into the system AND pushed the TOMO up.

<Do you blame the liquor store for selling booze to an alcoholic?>

Absolutely, responsible bartenders pull the punch bowl when the customers start trying to rip the toilets off the bathroom wall.