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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bid Buster who wrote (73045)4/26/2006 10:54:45 AM
From: Real Man  Read Replies (1) of 94695
 
Trees don't grow to the sky, but the way credit derivatives
are growing, it certainly appears that way. A 20 Trillion dollar
casino. Yeah, that's REAL value, not notional (the value they control),
and it grew from less than a trillion a few years ago.
Whoosh, that's half the World economy, if not more.
Ben can't print billions and use futures to manipulate
that market, like he does with SP500. He has to buy trillions.
If he tries to print
trillions of losses when the debt crumbles (close now, with
yields on the rise and mortgages in default), he will
hyperinflate. I don't think he'll agree to print trillions,
though. So, my bet that market can and will overpower the Fed.
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