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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (78962)	1/23/2008 7:28:19 AM
From: Real Man	Respond to of 94695

They were behind the curve cutting, according to the markets -g-

To: GROUND ZERO™ who wrote (78962)	1/23/2008 7:57:18 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

We don't want another depression. While I am joking about Ben a lot, I think he is a very educated man. There are models for optimal interest rates, and that's why the Fed funds futures often price the rates just right. -g- The Fed is even joking if they are necessary. I think Sir AG is responsible for the bubbles, and the situation we are in, since he intensionally inflated the RE bubble by dropping the rates too low. My bet is that Ben will follow optimal rates, inflation vs depression. However, a double dip recession seems unavoidable at present. I may be wrong. AG ran a dictatorship at the Fed, which means whatever he said was the law. He orchestrated a few CPI revisions. He also lowered the rates to where, perhaps, they should not have been, causing all the mess. It is also Ben's job to prevent a panic in the markets. Note that Ben has stopped all the printing in May, perhaps, intentionally. Since then we had troubles. A quiet revolt? Personally, I don't have any background in economics, but I have ultimate respect for this man's economic background. I am sure he knows what he is up against. I am also sure AG knew exactly what he was doing, achieving short term gains through bubble blowing, but he did it anyway. I think AG is a selfish evil man. Ben just does not give that vibe to me. He is jewish, and is very educated. He deserves to run the Fed in these difficult times. While many gold bugs praise Ron Paul for his questioning of Ben, and for his explanation of the current troubles, I really think the measures that he is proposing would actually cause a lot and a lot of pain, and the Great Depression, take II. These are extremist measures that will likely lead to a 30% unemployment rate and a lot of empty houses around the country.

To: GROUND ZERO™ who wrote (78962)	1/23/2008 8:12:57 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

Note also that housing bubble popped when Ben came around and raised the rates. Another coincidence or a fix? We shall see. While the markets are very optimistic about a 50bp. reduction of interest rates at the Fed meeting, I think it all depends on whether or not we see further panic in the markets. If we rally substantially into the supposed Fed cut, I would short the meeting, cause there will be no fed cut. The Fed is a bit ahead of the curve now, according to what I'm hearing, but this cut was necessary. Whatever the circumstances are, the Fed is needed to find an optimal balance between recession and inflation. Unfortunately, this could mean we get both for a while. That could be the optimal balance. A bit too honest? Is that a crime? -g-