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

To: kris b who wrote (48160)	12/25/2005 10:19:35 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

I subscribe to a credit Bust outcome, but the effect on currencies will not be that simple or theoretical (the simple deflation K-wave view of things), and I think one has to take it one step at a time. The key is figuring out where the Humpties are significantly "offside". One area described in the Barrons column Message 22003051 are short the low interest currencies like the Yen and Euro, and long commodity currencies and the USD Bubble sectors. So we could see a drop in the USD against the JY, EU, SF, and possibly even a rally against AD, NZ, the SA rand, Brazil. Currency trading is real challenging, but there are other ways of playing this unwinding theme, one of which is bear spreads on the Pig Men, and synthetic/derivative names like LEH, and CME.