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

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To: carranza2 who wrote (85605)8/28/2007 3:06:23 PM
From: Haim R. Branisteanu  Read Replies (2) of 110194
 
Observation on the FX markets - it is clear by now to all that the USD is overvalued but it still managed to hold above it's long term trend, even that recent news justifying lower interest rates and lower economic growth are spreading.

Many would approach this as a "buy the rumor sell the news" approach but I think it has to do much more to FX manipulation.

The prime suspects are not the US IMHO but those countries who are selling into the US commercial markets and those holding huge amounts of US denominated assets.

More so the price of gold seems ominous that selling occurs into any rally - just wonder when will it stop - or may be any one is piling into wheat now but still the strange actions in gold and FX market are far from being "free markets".

When will the first real crack show in the USD?

It may be never (great contrarian indicator <GG>

Were are living in interesting times
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