The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: RockyBalboa who wrote (4604)	3/4/2008 11:58:06 AM
From: RockyBalboa	Read Replies (1) of 71447

European Bond traders now adopted the concept of inverting the yield curve. It worked well in the US creating havoc... With the European Bund trading briskly at 117.78 in the face of tight overnight and short term interest rates, the ECB is now in the Heli Ben camp. We have not seen this for several years. Of course this is the march issue and a bond squeeze towards the expiry is always possible because of the sheer lack of deliverable bonds. This drove the "latin spread" even further and I think traders want to see 100 points. Arbitrage funds are bleeding like hell. At one point the ECB may be forced to issue exchangeable supra European debt to instill some peace and stop momentum trading. The death trade is to short the EUR and carry and to short some of the European bonds. I will try that beginning thursday, NOT today. I am convinced that we quickly near the maximum pain level.

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