[DrStool]

Fed Releases Turdsday 5/8/03

The net Feed today was $3.5 billion. They can't jam the dollar by printing more of them. Quite the opposite. In order to boost the dollar, central banks have to buy dollars, taking them out of circulation. The Fed, BoJ and EUCB have to buy dollars, which means selling other currencies, and/or government paper, doing reverse repos etc. That means draining Feed. It's been my argument all along, the more they Feed, the more they will collapse the dollar, and eventually the bond market.

Hasn't happened to the bonds yet, but we may have seen a shot across the bow today with the near failure of the 10 year note auction. They came within a whisker of not selling the whole thing. Sooner or later Al will have to drain and tighten. Probably sooner.

These are the prerequisites for a crash in the stock market ala 1987. More in tonight's Anals. Take a peek as Doc reviews the monetary data, chronicles the short, intermediate, and long term market cycles, with hot pictures of naked stock charts, the Long Bong Hit, Uncle Buck and the Golden Stool. Drop by your stock proctologist's office, and get the big picture. Stoolies, log one in. If you're not a stoolie already, become one Now!

And don't forget to join Doc and friends during the market day in Stooltrading as he plots the market's twists and turns for you.