aint your daddy's recession

It's my book... well. With The FASB rulles, based on my thinking. Every financial instrument that pays off in greater than 1 year, with a yeild of less than 5% are worthless. And anything paying off Greater longer than 5 years... yielding less than 9%. Are also worthless.

I think the smart money knows that Interest Rates will have to go up... During this slowdown, There is no cure for this in the bond market. I still don't understand that market as well as I wish I did, and as fatigued as I am... it's tough to get to that reading.

There is no cure for this but the Cure... that market is waiting for it to happen.... As much as the "Fed" wants to convince people to loan money 30 years at 5% it's only the dumb money willing to go after that.

this is the credit crunch, They want highter yield.

As the dumb money on wall street.... who have some Mojo.... and will try and trade this to the upside.... but the reality of us being range bound .... in some range say 11k-12k for the next 3-7 years.....

I think when we find a level... we will be range bound for 6 months, then take a new leg low. The top of that is somwhere in the 11800-12800.

As much as I'm psyched about the Fed Action.. Because it's hard to hope for the failure of the financial system that provides you with the funny green paper that aparently has value. They are only providing 30 day value to MBS. and I guess giving 1 month treasuries for them.

good stuff, I'm psyched to see how it turns out.