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


To: tekgk who wrote (33065)11/4/1998 11:09:00 PM
From: Cynic 2005  Read Replies (1) | Respond to of 94695
 
Tek, looks like your scenario (#reply-2617175) is playing out slowly. Here is something that should worry GreenSpam.
<<The real story for the day was a terrible bond auction, one of the worst in the last 10 years. Basically, they had an auction and nobody showed up. I think the significance is clear - basically all the leveraged participants have been wiped out of the fixed income market. So while the party has continued (and even become exponentially more violent in the equity markets) there is an appearance of a shortage of capital in the fixed income market. >>
Worst financial crisis in 50 years didn't last even for 50 days. -g- Now Greeny has a tough choice among the competing alternatives.
1) strong buck, higher rates and slower growth, weak stock market
2) lower rates, weak $, possibly weak stock market (liquidity?) caused by high inflation (YES, I said inflation!)
3) wild cards - brazil, another LTCM and talk of a break in confidence!
One thing he CAN NOT give the US (and the World) is lower interest rates, lower gold prices, higher stock and bond prices. Something has to give. You can;t expect to fight mother nature and win. So far his bubble management gimmicks have worked. Let us see how many more tricks he has!