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

To: westpacific who wrote (74718)	12/2/2006 5:58:36 AM
From: westpacific	Read Replies (2) \| Respond to of 110194

Doug Noland agrees with what I see - " Time to gear up for the speculative blow-off. There are indications…" And " For now, I’m going to force myself to see it before I believe it. Wall Street and the global leveraged speculating community have become incredibly powerful. I don’t expect they’ll be willing to let go of this pot of gold without a hell of a fight." And on the dollar "If this proves yet another case of the ballooning Financial Sphere dictating the Economic Sphere, the current market dislocation and yield collapse could be setting the stage for a 2007 inflation surprise. On a global basis, the faltering dollar will pressure foreign central bankers to tolerate loose financial conditions, while leaving domestic Credit system free to expand at will." Tell you buy non-dollar based stock assets "There is thus far no indication that market developments are impinging the global M&A boom. Non-dollar assets – from gold and the metals, to energy, to foreign companies and resources – are being revalued higher. And, importantly, this circumstance is quite constructive for Credit growth and speculative excess from a almighty global financial infrastructure that has now had almost five years to get positioned to play this “trade” for all its worth." And to finish it off this is ON THE MONEY, Doug at his best this week "I have a difficult time buying into “the economy is about to fall off a cliff” viewpoint. I remain skeptical of the bond and interest-rate markets’ histrionic responses to manufacturing data. After all, the U.S. Bubble economy is chiefly dictated by finance and “services.” Financial conditions remain ultra-loose and, as far as I can tell, the services arena maintains an expansionary bias. Global liquidity conditions are unparalleled. As such, I am more inclined to believe that we are witnessing yet another case of derivative and interest-rate hedging-induced market dislocation. In the past, such circumstances incited a boost in lending and market-based finance." We are about to head into the blow off stage. It is going to be wild and a ton of money can be made. Trade it. As Doug says, "they will play this trade for all it is worth!" This beast, monster is not just going to turn on a dime. And if I am right and the dollar gets creamed, you better find a way to increase your net worth or like in the days of Weimer, be wiped out. Whatever you do - hedge - outside of just being dollar based in your assets. West