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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Eddy Blinker who wrote (75950)	7/12/2007 10:14:17 AM
From: Walkbarr	Read Replies (1) \| Respond to of 94695

Take it some where else EB...

To: Eddy Blinker who wrote (75950)	7/12/2007 10:43:52 AM
From: Real Man	Read Replies (2) \| Respond to of 94695

I do believe it's the Fed's fault we had a stock market/internet bubble that popped in 2000, and I also believe it's their fault we just had a RE bubble that popped in 2005. I think bubble management is not a way to sound economy, so... I don't like what the Fed has been doing. As far as liquidity goes, they are just enablers of easy money, which, yes, gives profits to the trade. I disagree with you on how computer models work - most profits, I believe, are made for the market makers (read "trade") in the options market, at least according to BIS. These computers definitely work in agreement with the Black-Scholes options pricing/delta-hedging, with some version of volativity "smile", and not anything else. As long as there is abundant liquidity (provided by the Fed), volativity will be suppressed, and the markets will move higher -g-