Bears are really fighting the banks, the derivative
market, although it is quite obvious that Greenspan is
very supportive of OTC derivatives, a 150 Trillion
notional value market. It is totally unregulated, which
makes it criminal akin to Enron.
A collapse of that market will ensure the downfall of
everything else - Enron-like charts for the banks.
Extreme leverage ensures the continuation of
the bubble, but we all know the other side of it. I think
this market is trying to make a top here. If it does,
especially if bonds make a top, we could see a very violent
move down through the lows. With Yen back down, if it
stays down due to longs exiting Yen positions, BOJ
purchases of treasuries will go away. Will the speculators
still pile up on "considerable period", buying long
treasuries, and shorting short treasuries with
extremely high leverage, or will they
get flushed out? I don't know. But even with the
bogus adjusted with hedonics CPI report, it showed 6% annual
inflation. So, all treasuries now officially had a month
of negative yields. Someone MUST be holding them, w/o
using leverage. I bet that someone does not like this one
bit. |
