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

To: Paxb2u who wrote (33079)	6/2/2012 7:48:28 PM
From: Hawkmoon	2 Recommendations Respond to of 222677

Hawk, don't they have to in order to replace currently due debt with debt due in 10 years? Peace I'm not an expert in Fed operations other than the basic knowledge that they drain liquidity by selling Treasuries, and add it by buying. But in this case, one would think they wouldn't want to assist panic buying in the Treasury markets, except maybe on the long end, and selling short term paper to keep short term rates from heading for 0%. I would think they would want to buy on weakness in bonds in order to maintain their interest rate targets. So if they buy anything, it should be buying out higher yielding corporates or mortgage debt in order to liquify the banking sector. And of course, to create the sense of a bit of inflation, not deflation, they could buy gold and silver, which generally creates weakness against panic buying in the bond markets. I see Gold rallied hard on this equity selloff, while UUP/USD showed a bit of weakness as well. But what I'm looking for is whether the USD, Gold, and Silver all start rising in tandem as Europe falls to pieces. That would indicate to me that the Fed is loosing any sense of control they might have had over the financial system. And then, as the currency dominoes continue to fall, ultimately the USD will be savaged as well.. Hawk