Replies to post #101330 on Zeev's Turnips Patch-No Politics (ZEEV)

[Sherlock356]

"A perfect description of what he is attempting to do now."

Well...I guess we could make some money off another bubble eh?

[SantaCruz]

But is Greenspan too late?

http://homecenter.dallasnews.com/sharedcontent/realestate/realestatenews/042303ccRestateForeclosures...

[Joe Stocks]

Mlsoft, Thanks for sharing that article. Interesting chart with comments below.

"The Doctor Is In...For most folks in economic and investment circles these days, belief in the Fed's ability to resuscitate the patient with continued shots of meaningful stimulation runs relatively high. It's no wonder given that this time tested methodology has been the economic and financial miracle cure over what has been the post war financial and economic history of the US. Moreover, it's also worked like a charm in many a global setting of decades past, albeit the one larger anomaly example being Japan of the last decade. Although Greenspan has taken a lot of heat for fomenting a financial (and economic) bubble in the first place, what really matters as investors is what happens ahead. Although we are in no way trying to suggest the Fed is guilt free in what has happened in this country over the past decade, our personal thoughts regarding the Fed's prior actions are a moot point. What matters most is what the markets currently perceive regarding the Fed. And it is crystal clear that when looking back at recent history, the markets have every right to give the current Fed the benefit of the reflationary doubt. In our minds, stimulus and reflation are the chief characterizations of the Greenspan led Fed almost since day one of his multiple terms.

The following chart is a picture of net free reserves in the banking system. In essence, what we are looking at is a picture of liquidity. We are looking at a picture of the ability of the banking system to lend based on the liquidity at its disposal. Anything above zero is excess liquidity in the macro banking system."

[Joe Stocks]

Another good and timely point.
"We've heard many a Street prognosticator lately suggest that investors prepare to play the "reflation trade" ahead, as if the Fed was only recently starting to get serious about reflating the system. In essence, increase exposure to equities and reduce bond commitments. Our very humble question of the moment is why prepare to play the reflation trade now when it sure appears from the data above that the Fed began its reflation efforts in substantial earnest many moons ago? It has been happening for many quarters already. In fact, at this point, many years already. We already find ourselves in an environment of accommodation that can only be described as rare. Just what is the supposed nature of the further reflation effort to come? Get ready to play the reflation trade? Just maybe, the smarter money is getting ready to play the fact that the reflation trade has not been working as per the historical script. At least not up to this point.
<<<http://home.pacbell.net/idorfman/04222003.htm

[Paul A]

See that nice dividend in your account this morning from our friends at ICN?

Hey- ill take whatever I can get these days : )