Backfire Monday, the Voice of Average Joe

"They went in thinking that they were well qualified enough to buy a brand new Hummer with no deposit, and were give a bicycle and told to go away and think about it"

"The bill may have underestimated the fall-out from those who are concerned about the level of debt held by the U.S. government, and the potential inability to service things. It seems as though this may have been seen by voters as an under qualified borrower looking to get approved for a loan that they appeared to be trying to push quickly through, before a full credit check could be run. This on a day that $620B went in Federal Reserve TAF auction facilities, members are asking where the cash is coming from, and where it is going"

"Looking forward to the forex impact it would seem that trust in the 'World's Currency', the Usd, may be thoroughly tested, as will the resolve of overseas holders of U.S. debt. Sovereign wealth funds will have to weigh the need to buy dollars to protect their Reserves, and the need to hedge the fall-out of the lack of market liquidity that would free up how easily global trade takes place"

"Where was the cash coming from to cover it? Reserves, or Printing Press? The world knows that the Fed has a fractional banking system, they are allowed to hold just 10% of the value of any dollar printed, so they are behind the curve ball on 90% of the notes already in circulation. So once again, where was the cash actually coming from?"

"Take the pill, as bitter as it may be, get the weak hands out of the market, hand the reigns over to those who acted responsibly through all of this, and look forward to longer periods of boom. The boom and bust cycles are not getting any better, throwing good money after bad all of the time just does not cut it. The flaw in that is finding a responsible person to hand things over to"

"If the short-selling ban had not been in place the sellers may have nosedived the markets. That was a stroke of luck for those on the long side of equities who could not get out. Out of aversity there is always a positive"

"If not for oil dropping on fears that global expansion will not follow through in 2009 the dollar index may already be on its way to a visit down towards 72.00. Not often that oil helps the dollar to that degree; keep an eye on crude holding $95, if it does the dollar may feel some pain as Treasury yields weigh on dollar valuations now"

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

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