Derivatives: Darth Vader's Revenge Message Board

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Non-Tech : Derivatives: Darth Vader's Revenge

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To: Worswick who wrote (1597)	5/9/2010 11:13:41 AM
From: carranza2	Read Replies (1) of 2794

Zerohedge notes that John Hilsenrath of the WSJ has reported that Fed has opened swap lines to the ECB, ie., that the Fed intends to intervene in the currency markets. The ECB cannot go at it alone. The European banks are in a world of hurt so the CBs are again opening up the money spigots to bail out lenders who made bad loans, just as it happened here. Will the intervention involve supporting PIIGish sovereign debt and, if so, what form will it take? We'll learn tonight. Monday should be interesting. If the Fed is part of this, as it appears it will be, it will be shooting the USD (which is not a bad thing from its perspective as it devalues debt) but it will also make gold soar. It should go up even if the Fed is not part of this. This is getting very interesting. The USD bulls who are bullish on a flight to safety notion may be in for a surprise.

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