The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Amelia Carhartt who wrote (13264)	10/22/2008 7:52:16 AM
From: RockyBalboa	of 71456

The sheer size of the moves scares people to hell and makes trading like an auction. The EUR would recover one cent but is still off nearly 300. Now, in addition to liquidations some more reinforcing trades kick in: Desperate borrowers and their banks need to buy back yen, swiss etc. vs EUR creating another mini panic. The amounts are not small.. thanks to the interest rate advantage several 100B in foreign currency loans are out,,, >>>>> Message 25093980 Corporates have often resorted to currency options to hedge their exposures, some of which are more the exotic style. I believe they are not particularly happy with the zero cost collar (zero cost, hence zero value) with high floor levels and other arcane instruments like knockouts, cylinders etc.

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