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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Fiscally Conservative who wrote (13198)6/13/2012 11:54:13 AM
From: Hawkmoon2 Recommendations  Read Replies (2) | Respond to of 33421
 
I just believe the Fed has it's hands tied right now.. People are scared by what is transpiring in Europe and the consequences it will have here and around the world (capital flight and deflation).

So anything the Fed does domestically will be likely have little effect. Lowering rates doesn't help because capital flight is already accomplishing that. Providing FX swaps against the Euro will likely fail because the Euro is going to crash further from that capital flight and dissolution of the EU. It's like throwing spit--balls into a hurricane of fleeing capital.

Hawk



To: Fiscally Conservative who wrote (13198)6/14/2012 3:37:45 AM
From: John Pitera  Respond to of 33421
 
When the bond bubble breaks ..... we will see a depreciating dollar and commodity inflation that makes the 1970's episode seem like a 5 year old on training wheels, as contrasted with a 19 year old doing Red Bull extreme bike racing with flips.... and all the other things that scare parents.

John