Buyers should be here right about now, we have re-traced almost half the rally.
Buyers were are you?
Buyers were are you?
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If this rally fails...
- Thread starter ByLoSellHi
- Start date
Increased demand has pushed commodities prices higher; what is interesting is the role speculative demand has played. Which ever way you look at it, increased resources costs will lead to higher prices. You don't need a textbook to get that.
Treasuries are much lower why? Might they be pricing in much poorer growth? I think it's really intersting that commodity prices and yields are diverging. What would happen if the speculative bubble were to burst (and speculators actually reverse short?). Deflation? Just throwing some ideas out there.
Treasuries are much lower why? Might they be pricing in much poorer growth? I think it's really intersting that commodity prices and yields are diverging. What would happen if the speculative bubble were to burst (and speculators actually reverse short?). Deflation? Just throwing some ideas out there.
The way this is playing out seems to support the thesis that the problems in the economy are that of excessive risk taking not a shortage of liquidity. What happens if the securities the fed is now accepting as collateral are defaulted upon?Quote from ByLoSellHi:
...then what?
Let me clarify my question. This rally will fail. I think most of us have set up to fade it.
But if it fails today, and we end up close to even or even @ a loss, hasn't the fed just shot another was, in an increasingly diminishing arsenal, for no good effect?
Isn't the fed really playing with fire here by concocting these harebrained schemes, such as expanding the type of collateralized debt it accepts (and a whopping 200bn at that - woohoo) and risking that they ultimately fail to give the market any support, thus decimating what little credibility they have?
And wouldn't Milton Friedman be turning in his grave right now?
Wow this could spell doom if a near 300pt rally fades to red and closes red.
I think we can add another statement of fact to the litany of facts we've learned in the last several months, and it's quite simple -
The Federal Reserve, if there was any previous doubt, has lost any semblance of credibility it previously held among the remaining (but dwindled) faithful.
I mean, they just can't provide support no matter what they try.
Maybe because that's not their proper role - to support financial markets.
Maybe they should let the weak actors, who made the wrong choices, fall on their swords, and allow the underpinnings that the healthy and wise actors are now establishing, take us into a new bullish phase eventually, once the toxic waste works itself out of the markets (however low that takes us).
The Federal Reserve, if there was any previous doubt, has lost any semblance of credibility it previously held among the remaining (but dwindled) faithful.
I mean, they just can't provide support no matter what they try.
Maybe because that's not their proper role - to support financial markets.
Maybe they should let the weak actors, who made the wrong choices, fall on their swords, and allow the underpinnings that the healthy and wise actors are now establishing, take us into a new bullish phase eventually, once the toxic waste works itself out of the markets (however low that takes us).