Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: michaelrunge who wrote (29357)	3/25/2005 2:47:00 AM
From: John Vosilla	Respond to of 110193

As long as real short term rates remain negative and there remains some steepness in the yield curve Greenspan hopes to avoid a collapse and save his banker friends. He can actually pretend to be instituting a tight money policy since the BLS inflation figures are way understated. Lots of other things have to go right like increasing wages and pricing power at real inflation rates for most businesses.

To: michaelrunge who wrote (29357)	3/25/2005 7:50:40 AM
From: Crimson Ghost	Read Replies (2) \| Respond to of 110193

But the consequences of the dollar losing its reserve currency status could be worse than a severe recession or even a GM bankruptcy And a further plunge in the greenback could well trigger this. My take is that Greenspan does not care much about the buck UNLESS ITS RESERVE CURRENCY STATUS IS THREATENED. And we may be nearer to that point than many think

To: michaelrunge who wrote (29357)	3/25/2005 10:45:17 AM
From: LLCF	Read Replies (2) \| Respond to of 110193

<If Greenspan were going to raise rates now to "save the dollar" would he have lowered rates as low as he did, for as long as he did?> No... the focus is OUR economy... now that begs the question... does he possibly think that by muddling along the past few years he's somehow avoided something if he raises now and sends us into a recession? Perhaps somehow he thinks it would only be a small one because of his heroics? This would be a near term bear case for gold. DAK