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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: erinthe who wrote (10359)12/18/2007 1:54:55 PM
From: ahhahaRead Replies (1) | Respond to of 24758
 
I dont know if I'm in the middle of a conversation and missing stuff.

You're missing an education in high finance and the FRS.

But this appears funny to me.

The truth always does to those who know only what is popularly believed none of which is consistent in contrast to knowing what is consistent with the past but which isn't popularly known.

In answer, because debt will be harder to buy,

The problem, my boy, has been that debt has been allowed to be sold. Debt should only be allowed to be struck, not to be later peddled.

Oh, you didn't mean that. You meant that a higher interest rate makes debt harder to strike. That is equivalent to makes money more dear, and thereby makes you less profligate. Do you know what the wealth effect is? The problem in the US today is people have too much money. When you have too much money you don't use the money you have wisely. You speculate on property. You do everything thing you can to cheat value in order to be able to take a few more vacations. FEd thinks unless they keep you afloat in money the entire system will cullapz because their demand management philosophy has got them spooked into buying into the old Keynes fear that capitalism inherently sits in depression. You see, it is inherent in people to want to do nothing. After all, that's what people would do if they had even more money!

the numbers of those needing to refinance and who are unable, will grow.

What will increase their numbers? The only possible thing is more money at a cheaper rate. Do you get IT now?

No, you don't. Without having actually studied these things you have inherited the beliefs embedded in the milieu of university actuated myth miasma. You believe in demand management without even knowing what it is. You've been brainwashed. That's why I stated above, "The truth always does to those who know only what is popularly believed".

Forcing more fire sales & immediate pressure on the stock market.

What "fire sales"? Repricing of debt? Pleased tell me how that has anything to do with the stock market. And don't say as those in the deluded milieu, "the stock market abhors uncertainty". When is there certainty or when does the degree of certainty change? IT IS UNKNOWABLE. Thus, it's pure nonsense. Just another silly excuse invented by people engaged in gedanken in order to explain away losses.

This would make the markets clear faster,

Clear faster? I see you've been swimming in the gedanken word games that make the WS rounds. Let me clue you in. These silly inventions cause you to loose money because you take action based on their myths. Can you make "clear faster" rigorous at all? No. You don't even know what "clear a market" means. By the way it wouldn't "clear the market faster" because it isn't a matter of market clearance. "It" is a matter unwillingness to participate for fear of retribution. That is, "it" doesn't get to the market in the first place however or whenever "it" might be cleared. Anyway, nothing to do with the stock market.

but I can not see how it would rally.

Higher rate would not cause the stock market to rally but it would put it back on a growth trend.

It seems this would present a nice buying opportunity if it happened.

Trader mentality. The only thing that will come with this kind of thinking is losses.

However, a slow and steady clearing seems to be the preferred course of action, even if, in the long run, easier money encourages lax lending.

Demand management thinking. It is that kind of thinking that got us to this point. That's the kind of rationale that AG gave for his 3 years of negative real rate, his y2k pumping, his Asia Crisis pumping, his LTCM pumping, and his other preferred courses of action that have brought about eternal prosperity and have undermined the positives put in place by Bush's fiscal policies.

Something I'm not convinced as many seem to be in their criticisms of the former FED chairman.

You didn't believe me above when I told you that you were missing an education. You only know what the pabulum feeders spoon you.

An example of this, is the Australian Centro Properties Group & and the effect it has had on the ASX over the last few days.

To attribute a macro economic effect on a micro economic irrelevancy demonstrates the height of absurd pretense. I got it. You must have a degree in Econ.