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


To: mishedlo who wrote (67121)8/3/2007 2:16:10 AM
From: Real Man  Read Replies (1) | Respond to of 116555
 
Mish, the activity is the Fed put. You can call it manipulation
or moral hazard. That latter has caused most of the credit
bubble. The large participants feel that in case of blow-up
they are protected, and that the Fed will inject liquidity
in case there is a problem
ny.frb.org
Note the activity in April/May. A 1000 point dow rally in
April, that could be predicted 4/9/2007 (I actually did, based
on manipulation model of a broker that had been wiped out
in the Fed non-manipulation of 1998 that I mentioned in the
previous post).
A peculiar coincidence? They sure know of liquidity problems,
connected to blowing up credit bubble.
Note the parade of Paulsen, Bush and advisors, Bernanke,
Poole, all giving speeches to calm the markets last week.
They don't know? Hardly. The problem is the dollar. They blew
it. So, I suspect the Fed is now afraid to start another
series of coupon passes, because of the risk to spark the
dollar crisis. Checkmate?

P.S. It seems if you do the time lag for coupon
passes of about 3 months, works like a charm to predict
downturn in the markets. -g- The model of the floor broker
who wrote about "account 990N cleared through Gelber",
controlling the SP e-mini pit. Have you ever heard the
story? -g- I think max mentioned traders in the pits,
they sure know it if it's there. -g- Way back when.
financialsense.com
I'm not sure I believe this. Who knows.
But I heard the 990N story from his mouth first, on a forum.
dailyreckoning.com
That account, if it's there is likely private party.