Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (21031)	8/10/2007 12:07:01 PM
From: elmatador	Read Replies (1) \| Respond to of 218026

Markets developing a liquidity injection dependency: van Eyk Glenn Freeman Global market are working in new ways, with periods of prosperity interspersed with asset bubbles instead of the traditional economic cycle of boom periods followed by a bust, according to van Eyk’s head of research Suzanne Tavill. Partly as a result of US Federal Reserve liquidity injections, Tavill said the market is far less wary of shocks than in the past. After analysing the timing of past liquidity injections, she said the Long-Term Capital Management hedge fund of Salomon Brothers, the 1998-9 Russian debt crisis, Y2K and 9/11 in 2001 heralded a series of global asset bubbles. “In a way, this has resulted in a new form of cycle – periods of prosperity followed by asset bubbles, in contrast to the traditional economic concept of cycles of prosperity followed by recession. “Bubbles are rotating through subgroups of asset classes such as emerging markets, private equity, property and commodities,” Tavill said. She pointed out that while the bubbles in equities and property result in positive wealth effects, which feed back into the real economy driving economic growth, commodities could have a net negative wealth impact. Tavill said risk is being mispriced because the financial market “has become addicted to the Fed’s liquidity injections”. “Shocks and crises are not feared as they were. This is evident in substantially depressed risk premiums across and within bonds and equities,” she said. According to Tavill, the asset bubble is rotating, seeking undervalued assets, with risk mispricing potentially having a dramatic impact on prices across asset classes, especially those traditionally riskier sub-classes. moneymanagement.com.au

To: LTK007 who wrote (21031)	8/10/2007 12:19:00 PM
From: elmatador	Read Replies (1) \| Respond to of 218026

As long it affects only financial sector we are safe. If starts affecting the real economy, then we are in for trouble. As long as the real economy, commerce, production and international trade is going everything is under control. Countries heavily dependent on the financial sector are the ones affected.

To: LTK007 who wrote (21031)	8/10/2007 3:16:00 PM
From: LTK007	Read Replies (1) \| Respond to of 218026

Been following posts between Duster and Fed Reserve on i Hub This FedR post in response to Duster feeling the huge injection today insures rally ho next week and on; i qoute FedR response <<Posted by: federal reserves In reply to: Duster who wrote msg# 559677 Date:8/10/2007 12:22:39 PM Post #of 559752 Thanks Duster didn't see that one. The PPT came out in public today and rigged the markets. Remember,these are temporary repo's not permanent injections. When things calm down the FED will remove them and we be back in the same soup.>>