boswellrw
20 posts
msg #54015
- Ignore boswellrw |
8/12/2007 10:11:21 PM
Why is it that the Fed says they are concerned about inflation yet they continue to increase the money supply, the true source of inflation. The answer is they have no choice. Did anyone else find it strange that they decided to stop publishing M3 figures. They know and use this number. Why is it they don't want the public to know what it is?
|
nikoschopen
2,824 posts
msg #54019
- Ignore nikoschopen |
8/12/2007 10:58:11 PM
Bernanke & Co is in a real bind at the moment because by increasing the money flow (the next best thing to actually lowering the interest rate) they'll push down the already battered greenback even more, which will be the cause for the bond rates to rise that will, in turn, further aggravate the current mortgage/credit crisis.
|
nikoschopen
2,824 posts
msg #54021
- Ignore nikoschopen |
8/12/2007 11:59:11 PM
The Bank of Japan pumped additional 600 billion yen into the pipeline on Monday after infusing 1 trillion yen on Friday. While this might be initially seen as a positive development, some people will no doubt ask "hey, just how bad is it that these banks must keep adding liquidity day in and day out?" Moreover, just when will they call it quits since this can't go on forever?
|
msummer2007
129 posts
msg #54022
- Ignore msummer2007 |
8/13/2007 8:03:57 AM
Valid point Niko, just what is being masked here, and to what depth. The need for all these banks to intervene is unnerving. I say it is better to be safe than sorry. Buying Puts is probably a very good idea. Who knows what goes on behind the scenes, we (the investing public) are always the last to know. If these banks did not intervene what would the market be down to by now. At most this is a band-aid on a very deep wound. A wound that is not being fully disclose. Just my two cents worth!!!
|
boswellrw
20 posts
msg #54028
- Ignore boswellrw |
8/13/2007 10:54:46 AM
The Fed is holding the line on interest rates to present a relatively attractive deal for foreign borrowers while at the same time "printing" money so that all this debt will be paid back with inflated dollars. The only question is how long they can continue to walk the tight rope. So far, so good.
|
heypa
283 posts
msg #54029
- Ignore heypa |
8/13/2007 11:57:00 AM
Now Now Guys. Lets quit bashing the FED. They are doing the best they can to protect the dollar as they have for almost the last 100 years.Where would we be if they hadn't fought such a great rear guard action against a powerful adversary. Using the government fake inflation figures they have protected the last 3 or 4 percent of the 1913 dollar they were organized to protect. And they shall vigorously continue to do so! Of course that's the core value. The other parts of the inflation calculation are not worth considering since they do not impact the population in general.They have stolen almost all of the dollars value and are now in the final mopping up stages. We are freaking doomed. Remember that ancient Chinese proverb of our youth. You might as well relax and enjoy it. The ride that is.
|
maxreturn
745 posts
msg #54030
- Ignore maxreturn |
8/13/2007 1:56:56 PM
But Guys?!?...Mary says this is the dead bottom!
|
msummer2007
129 posts
msg #54032
- Ignore msummer2007 |
8/13/2007 2:16:04 PM
Far from it MAX, I wait for RSI(2) to be below 1 for the last 5 days. Then I wait for it to drop into the negative. LOL You definitely have to look at the broader picture. Imagine if you were trading RSI(2) on any financially related stocks this past month. They would have you on life support right now. LOL
|
maxreturn
745 posts
msg #54033
- Ignore maxreturn |
8/13/2007 4:22:46 PM
msummer2007 said "I wait for RSI(2) to be below 1 for the last 5 days. Then I wait for it to drop into the negative."
Dude, that was funny! What you say about context is absolutely correct. Mary doesn't seem to grasp that concept. It strikes me that he is a perma-bull as evidenced by him seeming to call bottoms daily during the late July - current decline. Meanwhile, I was enjoying profits on my puts. Lesson is that while VIX and RSI2 can be very powerful tools, they are simply components of a successful trading methodology.
|
nikoschopen
2,824 posts
msg #54037
- Ignore nikoschopen |
8/13/2007 5:29:46 PM
I don't ever recall so many central banks around the world working systematically around the clock to pump money into the system in such a concerted effort. These banks are not doing this out of good grace just to prop up investor confidence. Far from it. They're reacting to a problem that's much more profound than we're otherwise led to believe. By delaying the inevitable, they're only setting up more onerous condition for a perfect storm.
|