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 (8213)	6/3/2008 12:24:45 PM
From: Real Man	Read Replies (3) of 71454

I'm pretty confident these orders are computer Ponzi (derivative based) buy orders from several large derivative houses that tend to suppress volatility and thus support the market indexes, so the Fed's role is to provide access to infinite liquidity (likely computerized) with a healthy dose of moral hazard, such as in August last year, January, or March. These orders tend to come at the same time, because the derivative computer programs have only minor variations, if any. Those are Black Scholes type with some shape of volatility smile or smirk. I just can't imagine Ben or Hank sitting in a dark room pressing the buy or sell button in various markets 24/7. So, these markets are free Ponzi markets, with the Fed interfering only at crucial moments. Sure enough, the healthy dose of moral hazard was exactly what contributed to this derivative time bomb problem we now have to deal with. Nevertheless, I like to imagine Ben or Hank guarding the buy button and pressing it occasionally, a well known stock bear myth that has some truth to it - the PPT does act sometimes, a lot more frequently than back in the 90-s -g-

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