Greenspan and Markets

[stout7735]

It is only natural for Greenspan to continue raising interests rates until he deflates the stock markets....I can visualize Greenspan never being hot in bed,and showing consternation whenever his wife showed any  signs of "irrational exuberance" ...

[stout7735]

The downturn in US markets are a direct result of Greenspan separation anxiety felt by immature and less developed investors...Have no fear,The FED will keep increasing rates to 5.5% and the onset of a renewed recession later this year...

[stout7735]

Bond prices going down;stock prices going up...This sick inverse relationship will correct itself by stock prices going down to restore the natural positive relationship...Ramsberg's charts are correct...Welcome to the 2006 stock market brought to you by the Fed/Bernarke,in the best of Greenspan tradition...Have no doubt where this emerging bear market came from...Are we fighting an elusive inflation,or are we desperately trying to support our dollar in world trade???

[stout7735]

Fed chairman berserker is possessed by the spirit of the bear...After working himself into a frenzy,he verbally  axed the market yesterday...Negative personal savings,declining home (piggybank) values,maxed out credit cards,,and weak wage increases all add to a renewed bear market...If not a recession,how much of an  economic SLOOOOOOWDOWN do you expect???

[stout7735]

Bounce off the 50 DMA,THEN after the next Fed meeting,test the 200 DMA??? Oh the horror,but I am at 79% cash!!!!

[stout7735]

An unpleasant surprise raise of 50 basis points by the Fed  tomorrow will cool the housing market,consumer irrational exurberance, and the stock market indexes..."Smart" money expects only 25 basis points...They may have out-smarted themselves in the face of  banking industry interests...

[nullzero]

I will take my bets on a bloodbath next few days and weeks ahead. No long positions held since the big turn in the market. Rising intrest rates, real estate market tanking will lead to a recession. The economy was lead on by the real estate industry last few years. With construction, mortgage industry, home products, and consumer goods increasing due to people using there homes as an ATM machine. I can only imagine how bad it will get when the people start mass selling there homes and the foreclosures go up significantly. The demand is gone in the real estate market those who bought have already done so and even the ones that shouldnt have bought due to there financial condition, have bought using ARMs and 0 down on a house.

The investors, flippers, speculators, and baby boomers buying second homes are going to rush to sell when there appreciation goes to depreciation. It has been said that there hasnt been this much speculating in the real estate industry ever! What does this mean.... Many of the homes in this market are vacant. Well if the rental income from the home cant cover the mortgage and the home is depreciating then investors and speculators will jump to the door to sell and cash out.

In my opinion its looking very grim, we are all in this together good luck to all.
Also I would suggest watching this video on the real estate market and the economy by a professor at UCLA its very intresting and informative. It has given me a clearier picture of the troubles ahead.
http://video.google.com/videoplay?docid=-2640239019877885520&q=real+estate+bubble

[stout7735]

If the Fed postpones another 1/4 point rate hike this month,will we see a "suckers rally"  in stock prices lastimg a couple months???I hope so for the short term...I bought back in last month....

[stout7735]

Old Greenspan is still able to move the markets...Despite being retired and stating the obvious,his statements that the Chinese markets would go down created an afternoon  dip in the American markets...Judging from the timeliness of  his past premature eloquence on the  irrational exuberance of American markets,can we be certain that the Chinese markets will continue to skyrocket for at least two more years?

[stout7735]

The Fed doesn't need to lower the interest rate to stimulate the economy and boost the markets....The printing presses are pumping out dollars at more than twice the normal rate   Maybe that is why the money supply is no longer published...

[stout7735]

Cramer  thinks Bernarke is asleep at the wheel...Bernarke is wide awake,desperately trying to save the dollar , which is at the edge of the  80 index value tipping point ...I expect that a rate hike is more likely than a rate cut...While the Fed publicly  claims that inflation is the enemy,the imminent drop in the value of the dollar is their primary concern...Stock indexes are planned to dive ;a sacrificial lamb to the global economy.......

[stout7735]

Having been fed the lotus flower from the Fed and sung to sleep by President Bush's reassurance that the economy is fine,the markets are awakening with a hangover...Thank God for SDS,SKF,SRS and QID...

[stout7735]

The "Fed " "is forever blowing bubbles..".....

[stout7735]

Bernarke saved the markets Friday by being soft on inflation...Since the "Federal" Reserve took  over the dollar in 1914, the 1914 dollar is now worth 3 cents...   

[stout7735]

Fortress Fed has the resources to address "liquidity issues" of most banks,hedge funds,and mortgage lenders during the next few months ...However,if the enormous house of cards of 500 trillion dollars of derivatives credibility is called into question , its collapse of confidence would be a Tsunami which would sweep away all remnants of the Federal Reserve Board... Of course this will never happen , like China will never dump its US Treasuries on the markets...