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

To: GROUND ZERO™ who wrote (80028)	4/19/2008 7:45:03 AM
From: Real Man	Read Replies (2) \| Respond to of 94695

The problem is this: Fed filling their balance sheet with mortgage crap, but the amount of crap is bigger than the Fed's balance sheet, and 50% is filled up. So, FHA (the government) are also backstopping it. Can't stop it by "inflating" - as food and gas prices go through the roof, while payouts from the mortgage refis become really negative, discretionary consumer spending will inevitably drop, and the economy will be in a rut for some time. In other words, the patient is in ICU still, while the markets are celebrating like it's 1990. -g- Not to mention that such stuff is not very positive for the clownbuck. The risk of a dollar run remains high. At some point it will end, I'm sure -g- But we need to bring back the manufacturing, and we need a much healthier economy. So, let the bubbles deflate slowly instead of propping them? The Fed is not doing what's right? The Fed definitely was NOT doing what's right (blew the housing bubble to save the stock market) since the dot-com bubble popped, they keep not doing what's right. So, the markets will do what's right for them, and that will be painful. They started doing just that.