The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Jim Willie CB who wrote (28100)	3/8/2005 6:18:11 PM
From: benwood	Read Replies (1) of 110194

Makes sense to me -- that the greater USTBond interest, magnified by the 30x leverage obtains via the futures market, causes the daily adjusted Yen equivalent value to grow because the USTBond contract value rises about 3x as quickly as the USD depreciates over those 18 months. I assume this only works because the US interest rates have been artificially pegged (more or less) and that if they ballooned, the futures contract go up in smoke leaving the Yen borrower $10 in the hole. If that's all basically true then it makes more sense to me about why it's so important for Greenslime to telegraph his every move to his buddies.

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