The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: Giordano Bruno who wrote (3500)	1/22/2008 8:17:08 AM
From: Real Man	Read Replies (1) of 71479

Well, we talked about that with Stan a while ago. The mystery "PPT" rallies may have been just an ordinary bubble in standard options strategies (selling for income, hedging the risk) similar to LTCM, only 500 times bigger. A lot of CTAs (hedge funds) selling puts and calls for income during a period of very low volatility. It works when there is liquidity, but liquidity evaporated. In 1987 this was known as "portfolio insurance" that, some argue, caused the crash. The resume - the bear market could only start with a market crash. A low probability event, impossible to predict. We are starting a bear market, and crashing. This could be very bad without a Fed "save". But hey, if we crash 90% now, then the bear market will be over soon. I expect dead bodies NOW, that's who is selling the futures.

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