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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: el_gaviero who wrote (983)	9/15/2007 3:57:46 PM
From: bacchus_ii	Respond to of 71475

Maybe the market does not exist anymore (since 1987 crash) and the FED can always buy the market (Plunge Protection Team aka PPT) via offshore account with unlimited cash. In that sense, Wall Street is right to believe the Church of FED, because in front of collapse of the $USD you rather hold real company than worthless money. The "market" will move the way the FED permit it to move. It's Theater the same as politic is Theater, like the news, the justice system ... etc etc. They make the reality they said... “Those who can make you believe absurdities can make you commit atrocities.” -- Voltaire

To: el_gaviero who wrote (983)	9/15/2007 7:02:11 PM
From: stan_hughes	Respond to of 71475

"He may think that he is trying to anchor expectation about inflation when in fact what he is doing is un-anchoring expectations about the FED" That's an astute observation and a very, very good point, thank you for sharing it Vi has often stated on this thread that the Wall Street price support charade won't end until the day comes that opposing forces become so strong that even the Fed can't hold them back -- like a dam bursting, if you will Attempts to predict the timing or the catalyst for such a turning or tipping point usually revolve around some kind of cataclysmic occurrence that overwhelms the Fed's ability to maintain order in the markets, but your suggestion that such an event could be triggered almost accidentally by a simple sentiment change ought to give anyone pause It also makes me wonder whether the Fed sees themselves playing with fire here, or whether they view it as just another day at the office

To: el_gaviero who wrote (983)	9/16/2007 2:47:08 PM
From: koan	Respond to of 71475

I agree with your assessemnt. Put simply, as I am a simple guy-lol: during the last WORLD market meltdown the feds balked and the markets kept falling. The feds then lowered the discount rate and extended it from one day to 30 days and the markets turned right around. The world's markets have spoken to the fed. Either give us what we want (liquidity), lower discount rates and lower fed funds rates or we will will panic again and sell off big time. The big problem is that as Keynes formulated, we are supposed to save during times of economic expansion in the business cycle, so we can spend during times of recessions. GW spent it all during the expansion and now it is recession time in the economic cycle and GW has shot all the bullets by piling up huge debts so large we cannot afford a recession or high interest rates. So controlled inflation and a falling dollar is what we are left with. This is not a problem with a good solution. It is a delima with only a bad decision and a worse decision.