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: yard_man who wrote (5256)	1/16/2004 4:48:10 PM
From: gregor	Read Replies (1) \| Respond to of 110194

>> will have to buy treasuries to cover?? << I think they have been short the dollar and have profitable positions. When it reaches the point that they have to cover to maintain a profit I think it reaches the boiling point. I don't think they maintain their positions and let them slip into the negative. It will be like someone getting off a fulcrum point if I'm correct. You first add weight to one side and then you take all the weight off the other side. The taking of weight off the other side will be the hedges getting right back in shorting the dollar for another round. I think we are setting up for the 10 year bond to pop to 4.5% again and then see it drop back down to current levels. The whole process is necessary to form a bottom in the dollar in anticipation of European banks dropping interest rates....bwt'heck'dik.