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Strategies & Market Trends : The coming US dollar crisis

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To: Rarebird who wrote (5985)4/8/2008 2:00:41 PM
From: stan_hughes  Read Replies (1) of 71475
 
Interesting take, thanks for pointing it out

Seems like a reasonable analysis on the EUR side, but there's still that pesky little problem of the continued deterioration on the USD side which, if synchronized, might keep EUR/USD reasonably range-bound

Assuming that MS is correct in their assessment that European institutions have not adequately diversified outside their own region, in their defense I would suggest that those fund managers needed (and still need) something suitable to diversify into -- the USD has been absent from that list for 5 years now, and might stay off for another 5 years if even just half of what many people fear actually comes true -- JPY and GBP e.g. have their own problems as well here, and there are only so many choices big enough to handle the trillions of dollars/euros looking to minimize risk, especially where commodities are administratively or philosophically off-limits as a wealth repository option

The big guys face the same diversification problem we all do -- where to hide -- and some of the more unpleasant scenarios the world is facing suggest not holding paper anything here

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