Replies to post #58637 on ajtj99's Market Pulse

[otraque]

<<I agree with that scenario Welles.

Pavlov's buy the dip dogs are being set up for a thrashing.>> What are chances the Fed will now start printing money as fast as possible and flood markets with major liquidity and also pause on interest rates.
If so would this not change our scenario and instead lead to a wild run-up from rampant speculators and leave us with a massive sell-off at much later date following a huge and insane bubble building.
What do we know? Speculators run-up prices in everything thing if Fed flood markets with liquidity( that is print money as fast as possible).
That this will be a disaster for future will Fed even care????

[otraque]

I am getting the prevailing view that market is holding up to shocks on FAITH that "Big Daddy" will loosen money supply and let the Casino go wild.
Knowing the powers in the Fed and on the Fed believe in printing money super fast and loosening money supply in crisis, i am biased towards an insane let the greed flow, let the asset inflation continue.
Spend spend spend, forget debt, forget saving look how rich you are, with that house and , hey now the stock market is starting to rocket.
I am seeing once again the Fed setting up for a massive "wealth effect" fantasy that will be blown apart in 2006 and do this by simply making credit so easy now.
I ask when has the Fed in the past decade refrained from not resorting to massive use of the paper money printing press when under any duress???
Market is holding up because Fed has trained the pavlov's dogs to believe investing into disaster is GOOD.

[otraque]

Our man in Hong Kong favors Fed will not loosen and pump MS until market tanks.
An interesting thought.
If we go up the first two days post labor day i will ADD to my short position but pull and flip all at the time i think is safe.
As i think, because of Fed's position post Katrina, it will flood money supply given a Fall sell-down and we will have our final run-up before reality catches up to market, imHo, only.