The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: MythMan who wrote (385)	7/16/2007 9:45:46 AM
From: Real Man	Read Replies (1) of 71445

So is the myth about the Fed "controlling" the market. All they do is inject liquidity and control short-term rates. Derivative trading takes care of the rest. If there are no liquidity issues, then these bets are always winners (they are really similar to income bets, only drastically leveraged -g-). AG always provided lots of liquidity, but only in times of severe stress. It seems Ben took this to the extreme in recent years, and provided liquidity all the time for no apparent reason -g- So, now everyone is leveraged to the hilt, and even a minor decline can cause a severe meltdown. Hedge funds bubble is probably the reason why volativity has been so low.

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