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Strategies & Market Trends : The coming US dollar crisis

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To: Cynic 2005 who wrote (15573)12/17/2008 10:21:56 PM
From: Real Man1 Recommendation  Read Replies (1) of 71475
 
Bond market gone bananas and is overdue for a reversal. There
is nothing to support current interest rates but the Fed
and a lot of air, since the sovereign risk is huge.
So far the market dynamics has been that
stocks move against the bonds and the dollar, but in a currency
run they all fall together, as the Central bank rushes to raise
rates to defend the currency. We are not there yet, IMHO.
Quite the opposite to a "rush to defend the currency" is
happening at the Fed, they are letting it dive and intend
to print money to buy bonds along the curve, which is
why the bond market went bananas. So, think of Spoos as
Zimbabwe industrials. Close enough. -g-
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