The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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To: SouthFloridaGuy who wrote (6849)	5/4/2008 11:34:29 AM
From: Real Man	Read Replies (1) of 71447

Yep, Last year the market discovered 50bp. spread for subprime bonds was a bit too low for the credit risk involved. Prior to that point subprime - backed bonds were virtually risk free securities -g- Then the market might discover that the Fed's abilities are limited by their balance sheet, and they actually have to print in order to expand it. The dollar will discover new lows, as folks find out it's cheaper to borrow the buck and invest it elsewhere at higher returns, and foreigners might discover it's beneficial to exchange certain worthless pieces of paper for valuable commodities.

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