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Strategies & Market Trends : The coming US dollar crisis

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To: Metacomet who wrote (752)8/12/2007 1:44:37 PM
From: RockyBalboa  Read Replies (1) of 71475
 
And maybe it's just me, but I don't even see any serious discussion about how to deal with the underlying problems.


No, it is not just you. Realistically I think we will discuss in one year. In the current state of panic it is way too early, as even Central banker tremble and professors who would lend us a calm explanation are on holidays.

I think we are not even at the point where we know with certainty what exactly has blown up.
There are many:
-unreported inflation
-exact size of credit blow up - realised/admitted default losses
-ultimate equilibrium exchange rates (as if such a thing existed)
-one or 2 large banks going bust

(not considering any civil unrest or unfavorable geopolitical developments...)

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Just remember how long the full truth about LTCM was held back. For several months people have been guessing about one-sided markets following no particular logic while people at LTCM had also no idea why everything in the market turned against them.

And LTCM was an albeit sizable still isolated event.
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