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Strategies & Market Trends : The coming US dollar crisis

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To: Tommaso who wrote (1223)9/29/2007 11:37:39 PM
From: RockyBalboa  Read Replies (1) of 71456
 
Good idea. Given the size of the debt markets other CBs and their countries commercial banks can not abandon US debt easily. Selling the lt debt would only contribute to the debacle by driving yields up and valuations of the remaining portfolios down.

What they can do is hedge their currency exposure as much as possible, therefore betting on the US yield curve. They are the largest carry traders now.
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