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Strategies & Market Trends : The coming US dollar crisis

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To: maceng2 who wrote (17846)2/23/2009 2:52:22 AM
From: Real Man  Read Replies (1) of 71463
 
"Are there signs that overall derivative exposure is being
reduced? Or are we still marching strongly onwards to ever
higher highs as implied by those bar graphs into 2009/10 ???"

I looked at the data a while ago when it came out, and there
were some signs of saturation or minor (5%) reduction. However,
somehow this is not present on Bart's chart. The latest
point of BIS report is 6/08, of course. The signs are
that if there was any reduction, it was minor, or that
derivatives keep powering along with all the Fed's liquidity.

The market value is especially troubling. But you would expect
that as volatility of all markets rises; which is why we've
seen so many counterparty failures.

Message 25434234

Humpty Dumpty sat on a wall.
Humpty Dumpty had a great fall.
All the king's horses and all the king's men
Couldn't put Humpty together again.

The Fed's major liquidity effort is an attempt to put Humpty
together again. It may work, at this scale, for a little
while, but not much longer
. Gulp!
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