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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (23381)	3/4/1999 11:57:00 PM
From: Lucretius	Read Replies (1) \| Respond to of 86076

the bond mkt is more heavily leveraged than the stock mkt. Why do you think easy Al had to cut rates because of "a total freeze-up in the bond mkt, the likes of which he had never seen" Its called no bids cause nobody has any cash cause most were working off of leverage that had been cut off. So easy Al cuts rates... the banks borrow fromthe Fed (ie- Fed prints) and boom... bids are back. Unfortunatly, gold bottomed at the same time cause the mkt knew what was going on... you can't just print up cash everytime things get tight... just like you can't tell your phone co... "hey, uh I don't have the $50 right now, let me go print up some to give ya" That's why I have always said that a rally in gold will signal the END cause it will be obvious to everyone (Al watches this indicator) that Al will not print anymore to bail out the kiddies this time.. the mkt will get to work its UGLY magic. That gold rally has already started. It should be rockin by next week. I think the XAU could see 155 pretty quick, depending on how violent the financial crash is... it could see it by April. My guess is though that it will be violent cause you don't crash unless the mkt knows that nothing will save them this time... that's why there is panic. We haven't seen panic yet cause the players knew Al would cut as long as gold was still in the doldrums and thus indicating no inflation.