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

To: Skeeter Bug who wrote (88779)	7/14/2009 11:46:45 PM
From: Real Man	1 Recommendation Respond to of 94695

The government does not control anything, they just do this, and WS computers do the bidding, to their advantage. Liquidity basically supports ever growing derivative pyramid, which, in part, is the bond market and lower rates. Basically, liquidity prevents the blow-up of the biggest Ponzi scheme ever, derivatives. Since the derivative market is concentrated in the hands of very few WS firms (who are also Fed primary dealers who buy T-bonds), these guys manipulate all markets through derivatives to their own advantage, and in accord with the Fed's "monetary policy" and the government's objectives (so that they get access to unlimited government cash). In the end, either the pyramid must collapse (we saw that this past Fall, and it would, were it not for the Fed), or ever growing liquidity injections to support it (it has been growing at a 30% annual clip!) will lead to hyperinflation. Which option did we choose so far? The answer is as always, as in the past - The Fed will provide and did provide and print Trillions of dollars and 10-s of trillions of dollars in guarantees to support this growing Ponzi scheme that has become our financial system. The answer is, hyperinflation.