Today's Market yack-yack is all about the Fed Minutes and what it all means.
IT MEANS THIS: THE MARKET WANTS A RETURN TO NORMALCY. AND IT WANTS IT NOW......NOT LATER.
Our little foray into Monetary LaLa Land by Greenspan etal, to try to "save the bubble" and the CEO options plans is over.
AND, ANY CEO WHO DIDN'T CASH OUT IN 2004 HAD BETTER DO SO, ASAP!
Grandma wants her 5% bank account back so she can stick to her knitting and turn off Kudlow and Cramer!
Now exactly how many money center banks will go to smash to accomplish this humble goal is problematic. But it's going to happen none the less. Get used to in.
NORMAL IS GOOD. NORMAL IS NECESSARY LONGER TERM
WHAT WE HAVE JUST BEEN THROUGH WILL SEEM LIKE A BAD DREAM IN FIVE OR TEN YEARS. PEOPLE WILL BE AMAZED AT THE STUPIDITY OF THE FED TRYING TO "SAVE A BUBBLE" THAT DIDN'T DESERVE SAVING.
We see already a response in the currency markets. THE HIGH INTEREST RATE DOLLAR IS THE WAVE OF THE FUTURE!
AND IT'S THE ONLY WAY TO HAVE YOUR CURRENT ACCOUNT AND BUDGET DEFICIT, AND EAT IT TOO!
The G-Man can continue with the "baby steps" plan of measured rate hikes, or he can go for 50PB next time AND FLUSH OUT THE SPECULATORS ONCE AND FOR ALL!
I SAY GO FOR 50BP AND LETS GET IT OVER WITH!
ANYONE STUPID ENOUGH TO STILL BE IN A "CARRY TRADE" DESERVES WHAT THEY GET.
RATES SIMPLY MUST RETURN TO HISTORIC NORMS IN 2005. OR ELSE!
OR ELSE WHAT? OR ELSE, YOU'LL HAVE A RUN ON THE DOLLAR THAT WILL BE CATASTROPHIC TO THE GLOBAL ECONOMY.
GREENSPAN SIMPLY MUST GO 50 BP AT THE NEXT FED MEETING TO:
SAVE THE GLOBAL ECONOMY!
And interestingly, even that might only be a temporary fix. What with the AliBabba, or is it "Ali Bubba," Kongress back in session!
Better count the silverware again!
KNOW THIS 2005 WILL BE ALL ABOUT A RETURN TO NORMALCY AND TEXTBOOK MACRO ECONOMICS.
WE'RE BACK FROM THE LAND OF MONETARY OZ! AT LAST!
OUR "WIZARD" AT THE FED HAS BEEN EXPOSED BY THE CURRENCY MARKETS.
WELCOME BACK TO KANSAS!
