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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Silent who wrote (103987)	7/12/2009 12:23:03 AM
From: Skeeter Bug	1 Recommendation Respond to of 110194

Joseph, i don't have a crystal ball, but if i wa sin their shoes, i want the following in the following order... 1. low interest rates. 2. low interest rates. 3. low interest rates. 4. consumer confidence. the first three are a consequence of needing to finance or refinance $3.5 trillion this year. they wanted the market to go higher until the strength of the market took money away from bonds (rates went up) and the expectation of inflation started to take hold (rates went up). imho, they learned pretty quickly that they didn't want the consequence of a high stock market - that being market driven higher interest rates. they don't want a crash because that will sour consumer confidence. the government controls a lot of available liquidity and i think this enables them to control the markets to a signficant degree. until one day they can't, anyway. when that is, i don't know, but i know it will come.