imported post
Tom,
Your view that 2006 is shaping up to be a big year for the market actually parallels the kind of activities that article describes, or so it seems. I am expecting a big year too.
"You see, the PPT only needs to kick start the buying. Then the shorts buy. Then the Hedge Funds jump on the bandwagon in search of that elusive trend - either up or down - deciding it is going to be up, and keep the rally going. But by the time the Hedgies are buying, the PPT is able to get out (and their Wall Street friends who took the risk and bought with them early) at a nice profit, the shorts are out licking their losses, and we watch a waning rally with low upside volume, low advance/decline ratios, and a high number of New Lows - kinda like right now."
Sound familiar?:?
This next paragraph decribes the proposed change to mortgage tax breaks. It doesn't seem so bad on the surface, but that's at the current interest rates. Whatabout all those folks who still have ARMs? They will no longer get to deduct the full measure of that interest, assuming mortgate rates continue to rise. Of course this is still down the road a ways, but I would certainly want to get a fixed rate if I didn't have one right now.
"It means encouraging Joe and Jane Middle Class to borrow up to their eyeballs in debt to pay for basic necessities after their family job was exported overseas, and then once Joe gets on his feet again with a new lower paying job, yanking a huge chunk of the interest deduction on all the home equity debt he was encouraged to acquire so he has to bear a larger share of the nation's tax burden so Corporations can keep their breaks, and even get new ones."