Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

federal reserve....

The part that continues to bother me is "how much longer can they do it?" In theory, the only limits are when the printing presses run out of ink, but I find it hard to believe that even Greenspan would take it that far considering all the negative ramifications on the bond, the dollar, the current accounts deficit and other problems. At some point I would think there was a practical limit even from Greenspan's viewpoint, but I may be wrong.

From the market side, the higher they drive it, the harder each incremental move will be since there is zero fundamental basis for the buying - in fact, quite the opposite is true. At some point even Abbey will see that it is all artificial and will want to take profits and sell into it.

The problem, of course, is figuring out when that will happen.

mlsoft