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 (7402)	5/17/2008 4:21:49 PM
From: Real Man	Read Replies (1) of 71475

A simple answer to your Spoos and weird market behavior - I think the Fed and the ECB will keep backstopping the system, derivatives will keep increasing exponentially until... they blow up with the Fed and the dollar. They have no choice. They are VERY scared they will blow up NOW, with a domino effect that collapses 70-90% of US banking system, and quite a few global banks, or completely zombifies them. Note that the ECB provided tons of liquidity from the start. The derivative market is an insane unregulated bubble. 1987 and 1998 was a taste of what can happen. Now that market is 500 times larger. Yo, they sure did not use the "smile" or "smirk" back then, which now added "stability", but... it's the same old scheme. And, like every Ponzi scheme it has to grow exponentially or collapse. Low volatility and low spreads until Summer 2007 reflected the exponential growth of this huge bubble.

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