The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Paul Kern who wrote (9732)	7/29/2008 1:08:06 PM
From: carranza2	of 71447

As usual, Jesse gets it: jessescrossroadscafe.blogspot.com Traders Walking Like Egyptians Down "De Nile" on the Merrill Writedowns First, and we cannot say this often enough, in light volume markets the short term action is more like a rugby scrum than a game of chess. The funds are trying to 'paint the tape' into the end of month, and perhaps squeeze a few shorts along the way. Why? Because its fees and bonuses that drive Wall Street, the customers be damned, and don't ever forget it. We are also in a period in which the cynicism and short term focus of professional traders is near all time highs thanks in large part to our government and regulatory environment. (See dollar chart below) This is the classic setup for a conflagration. But in the short term, the market is what it is. What Merrill shows is that the estimates of losses in the financials are substantially low, placing companies like Citigroup and Lehman and the other investment banks on the cliff edge of insolvency. Technical insolvency doesn't count, they are still a game until someone calls their hand, and Benny is trying to slip them a couple cards and some cash to help keep the game going.

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