Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (2435)	11/19/2003 11:57:29 PM
From: Mark Adams	Respond to of 110194

I think maybe a light bulb clicked on re MZM changes. It has been said that if Kim takes money out of her checking account to buy stocks/bonds from Ken, who then puts the money in his checking account, net-net MZM remains unchanged. Thus increased risk appetite should not account for decreased monetary aggregates. But, if Mr Yin floats 5B in dollar denominated debt, converts the proceeds into yen, thai bhat & yaun for investment overseas, and I buy a bit of that 5B bond offering using money from my checking account, then MZM shrinks and you have pressure on the USD. Mr Yin may expect to repay the dollar denominated debt with cheaper dollars in the future. May even see a net negative interest costs. But that is another tangent to the main story. Mr Yin may have listened to Mr Buffet & Mr Gross, and got effectively short the USD. I seem to remember talk of China floating some dollar denominated debt too. I wonder if that trade is getting crowded. Hutchison raises $5bn from bond sale Message 19520013