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To: fedhead who wrote (37557)6/2/2000 5:52:00 PM
From: Archie Meeties  Respond to of 42523
 
That's just it - Inflation is NOT subsiding.

The underlying premise of this rally is wrong, and it will fail once a few more neurons begin firing.



To: fedhead who wrote (37557)6/2/2000 5:58:00 PM
From: pater tenebrarum  Read Replies (1) | Respond to of 42523
 
Anindo, a currency crisis can be said to be in force already. virtually all the peripheral emerging markets currencies have completely collapsed in recent weeks. gold of course moves inversely to the dollar, and as i have mentioned before, a forced unwinding of the gold carry trade would be a catastrophe for the financial system.
however, a currency crisis is certainly NOT the only thing that can derail this market. note that the credit markets are having a seizure right now...and energy supplies are so tight, that a single involuntary refinery shutdown would probably bring about an energy crisis.
so there are lots of potential flash points that need to be watched.