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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (64723)	3/21/2007 5:37:21 PM
From: Jim McMannis	Respond to of 116555

Ben might have said: "The top's not in until Michael Shedlock throws in the towel in his deflationary stance". <G> j/k Party on dude! 13k? RE:"Heaven forbid! "A recession?" The lengths that central banks are going to avoid a recession are staggering. And each attempt to prevent said recession adds more and more and more to consumer debt. The hangover from this long running party is going to be the worst since the great depression. But who cares now? For now, the only discernible message from the Fed was "Party On Dudes". No one could hear the panic in their voices when they said it." You're right. The R word has replaced the F word and others on the top of the scared s*ootless list.

To: mishedlo who wrote (64723)	3/21/2007 7:23:57 PM
From: LTK007	Read Replies (1) \| Respond to of 116555

<<Now is not the time for a recession. We are in this fix because there is never a time for a recession. We hope to forestall recessions forever because if we can't all hell will break loose on the downside. That Mish readers is what the Fed really said today. Nonetheless the market seemed to love it. But what's not to love? The simple written translation of the above text is "Party On Dudes".>> Yes to all that you wrote. They have made asset inflation the foundation of the economy so they are now trapped. They are saying "party on" even though the party is beyond the edge of a cliff. And they know that, they know once the party stops and then the people get sobered and still will realize they have been dancing in air far from the cliff's edge, and then they will fall like a huge populace of Wily E. Coyotes. And that is the situation the Feds have, imo, the dreadful Greenspan legacy be an albatross about their neck, and i feel they must have fear as they scramble and scramble to stall the inevitable as they note that their bag of tricks is near empty. They are trying to keep the proverbial upside down pyramid standing miraculously on its tip without falling over. Odds are HEAVILY against them. Max

To: mishedlo who wrote (64723)	3/21/2007 8:25:46 PM
From: Bucky Katt	Read Replies (1) \| Respond to of 116555

You could not be more right. Yet, the boat is being floated on the sea of liquidity. Message 23388584 I read a story about Larry Tisch recently, how he lost $2.5 billion trying to short the S&P back in 1995-1999, so I am of the mind just go with the flow of money. Despite the rhetoric coming out of the FED, they are floating the boat on a sea of liquidity. When it ends, it has the potential to be devastating, but for now, you can't fight it. They are blowing the shorts out of the water this afternoon.

To: mishedlo who wrote (64723)	3/22/2007 9:24:13 AM
From: Crimson Ghost	Read Replies (2) \| Respond to of 116555

CONTRARY INVESTOR no longer contrary. Says join the stampede because the powers that be want to the market to rally and rally and rally some more. "Although NEVER to be discussed or admitted in public, the Fed/Treasury/Administration/Wall Street brethren will do everything in their power to accommodate the financial markets in their push to higher levels. Why? Because they have nothing else left to "accommodate" at this point. And the true reality is that having two major household assets declining in price would clearly be unacceptable, if not unthinkable, to the greater powers that be. We say all of this in the spirit of and directed toward the importance of risk management. Although we take the recent events in the credit markets very seriously, we need to remember that the financial markets have been conditioned for decades now to trust in the Fed to keep them from sin. And the Fed implicitly did not disappoint with their commentary. Nor have they disappointed with their recent open market operations. Follow the money - don't forget. Or for those less aggressively inclined, don't let the steamroller of herd driven money movement flatten you. If the SPX can put on just half as many points as it has gained in the last six days, we'll be at new multi-year highs. Institutional investors everywhere will have no perceptual choice but to participate. It's just a good thing it's with OPM (other people's money), right?"