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Strategies & Market Trends : The coming US dollar crisis

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To: Rarebird who wrote (5999)4/8/2008 4:42:31 PM
From: Real Man  Read Replies (2) of 71475
 
That, of course, depends if one thinks that current valuations
of the stock market, the treasury market, the bond market,
and the derivatives market are fundamentally sound. I'm not
sure they are. The Fed apparently thought it was necessary
to bail out Bear's derivative positions, otherwise the
whole system would collapse in a domino effect. This kinda
sounds like the system is not very healthy. <G>

The Fed is trying to revive it by pushing credit. Can the system
accept any more credit? Can the stock market bubble be revived
now to bail out the housing bubble? Or has the deleveraging
process started? Afraid so... If that's the case, the Fed's
ability to push more easy credit into the system and revive
the economy will have limited effect, and they are left with 2
options

1) Let it RIP (scary!)
2) Hyperinflate
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