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Pastimes : Where the GIT's are going -- Ignore unavailable to you. Want to Upgrade?

To: Augustus Gloop who wrote (154110)	11/8/2007 11:27:58 AM
From: Augustus Gloop	Respond to of 225578

This market is being tethered and manipulated. We should be diving right now.

To: Augustus Gloop who wrote (154110)	11/8/2007 4:07:22 PM
From: Lazarus_Long	Read Replies (1) \| Respond to of 225578

I gave them back the last of my holdings this morning. I had a couple I hadn't sold before. This market has been behaving VERY strangely lately. There were two indicators that just kept diving in spite of the rallies we've had. I was trying to figure out what they were saying. It hit me last night. Bye, bye, Mr. Market. I may see you on the short side. Has the Fed LOST ITS MIND????? The US$ is in free fall. US interest rates are below most Asian and European rates. British gilts (10-year British government bonds, guaranteed by the British government) are yielding about 9.4%. query.nytimes.com If you're a foreigner and you want a secure investment, which would you pick? (Perhaps a better source: bloomberg.com ) That falling dollar means higher prices for US consumers on imports. So what isn't imported now? And higher oil prices. Everything needs to be transported and transportation runs on oil. In order to sell its bonds (and the US gov't is always running a deficit, we know that), the US gov't will ultimately be forced to raise its rates. In attempting to lower rates to avoid the consequences of a housing crash subsequent to the crash of 2000, the Fed will be forced to RAISE rates. And investors in any bonds will demand higher yields to compensate for that inflation the Fed will cause.