Federal govt is carrying record national debt and there are web sites showing
in real time how fast it is growing. Many state governments are facing budget deficits,
but they have no money printing presses. Now that the individuals can't borrow on
escalating home equities, they are resorting to credit cards as I had posted a few
weeks back. Here is a link confirming my suspicion.
http://www.msnbc.msn.com/id/24507398/
If this country can morph into prosperity by borrowing for consumption, then it is different this time
and it must be the "new" economy.
This is what scares me the most...
Started by
pdx5
, May 07 2008 06:20 PM
5 replies to this topic
#1
pdx5
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I want return OF my money more than return ON my money
Posted 07 May 2008 - 06:20 PM
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule
#2
Cirrus
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Member
Posted 07 May 2008 - 06:33 PM
For me it's the XAU. If it's headed south the market isn't headed north. XAU is a pretty solid future liquidity indicator these days.
#3
vitaminm
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Member
#4
arbman
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Quant
Posted 07 May 2008 - 10:31 PM
Unthinkable... I know... If the dollar fails to recover soon... Will the rates be forced to go higher regardless of the economic situation... Everyone including me think that the dollar would bounce with a deflation (not a depression!) or severe sell off... I don't think it can happen like in a third world country currency where inflation soars with not much economic boom... BUT, can the Fed be forced to call the mortgage loans that it just absorbed into its portfolio when the 90 days run out?!?
#5
humble1
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Posted 08 May 2008 - 03:23 AM
no, the fed can't be forced to sell anything.
and besides that, they will end up BUYING chunks of the fannie and freddie portfolios. but none of that will be stimulative enough to get the economy out of the ICU.
this thing has to play out and that means TIME and DECLINE are required.
#6
arbman
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Quant
Posted 08 May 2008 - 03:47 AM
no, the fed can't be forced to sell anything.
I was saying just the opposite, the inflation is going up, so would the Fed decide to return some of the MBS it's been holding for a 90 day period to the banks and ask for their treasuries back?!? So actually, FED would force some of the banks in bad shape into bankruptcy, they certainly can do this, but would they? If Fed ever does this, I would think the conspiracy theories about the new world order are actually happening!
Edited by arbman, 08 May 2008 - 03:47 AM.
