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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (28344)1/10/2012 8:10:36 PM
From: robert b furman1 Recommendation  Read Replies (1) | Respond to of 222631
 
Hi GZ,

That is an astute and absolutely correct observation.

Interest rates will not go up until the economy flattens and demand for credit increases.

Banks are the best at knowing this and input from the regional bankers will trigger the Fed to appear they lead interest rates.
In reality they follow the bond market and that is why a timely short in bonds is no doubt the next great play for the decade.

It has after all been a 30 year bond bull market - there must be hell to pay when demand resurfaces.Unfortunately those who will pay will be those who have settled for no return but safety.

When the masses crowd a particular investment -they inevitably lose for staying there too long.
OH YEA !!

Bob



To: GROUND ZERO™ who wrote (28344)1/11/2012 9:16:27 AM
From: FCom7772 Recommendations  Read Replies (1) | Respond to of 222631
 
Not so sure about your premise regarding the FED's inability to lead markets, Mr. GZ ....

I would suggest that they can lead any market they choose providing that:

a) They exist.
b) The dollar has value.
c) They can print, unfestered, any quantity of dollars they choose and buy or sell into any market they choose.
d) They have unfestered influence over market regulations and rules.

The history in the bond market these past several years would seem to prove these points. Debt beyond anything that could have been imagined has been created worldwide over the past decade yet interest rates have steadily ramped down.

Unless any of the above listed items change or show valid promise too, I don't see any reason why the Fed orchestrated ponzi scheme can't continue.

Perhaps timing of the historical bond short we are all dreaming about is better tied to the future potential containment of the Fed's powers via real Congressional action to do so. Frankly, and VERY unfortunately, this isn't even on the horizon that I am seeing ...