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Tuesday, 06/24/2003 3:32:16 PM

Tuesday, June 24, 2003 3:32:16 PM

Post# of 704019
Entering the FED vortex?

These guys dug themselves into a big hole on interest rates and are now near the bottom where the hard rock is. Most folks
stop digging when they want to get out of the hole, these guys are going deeper and deeper. They remind me of oil
riggers adding pipe looking for the big strike down deep. They'll bankrupt a money fund or two if they go 50bps, but who the hell cares? They don't. Keep drilling for that
recovery. The treasury doesn't mind 1 trillion dollar deficits, just keep drilling for recovery. The FED has said the printing
press is unlimited.

Most folks view the rate cut as irrelevant, thats because the FED's stated rate of interest is irrelevant, only
the liquidity they shove around is important now. And liquidity is moving. Its going to move somewhere.
WHERE? From Bonds to stocks, stocks commodities, MMF to stocks, maybe gold will explode as the dig for global bankruptcy proceeds.

I lived in the mid-west as a kid, just before a tornado came it got quiet, the leaves on the trees were still and calm, absolutely quite, not even dog was barking, the sky had a weird look grayish and green like the ocean, then
WHOOOOOOOOOOOOOOOOOOOOOSH! Everything got blown away.

Where does all the money go next? Maybe everything will stay still, right on its spot, then in a sudden
rush, NO LIQUIDITY IN ANY MARKET! EVERYTHING COLLAPSES IN SYNC. NO PLACE TO RUN.
NO PLACE TO HIDE. HOMES, STOCKS, BONDS, FOREX, COMMODITIES, MMF, GOLD. IT COULD ALL GO RIGHT
DOWN THE PIPE TOGETHER. WHEN ALL ESCAPE HATCHES ARE CLOSED AND THE BALLASTS ARE FULL WE HAVE REACHED BOTTOM.



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