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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (75247)	4/15/2007 8:21:56 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Yes, and the sick part is that since they buy T-bonds, T-bills and agency bonds in the amount equal or so to trade deficit and exceeding the budget deficit, the foreigners control longer interest rates too (the carry trade is another major component, and the change in rates now is not in favor of carry traders; it will likely get worse unless the Fed raises). That's why I am looking for rates to move up together with a sharp drop of the dollar as a signal that their mood shifted, and think an all-time low for the dollar could lead to such a mood shift. They did buy MORE dollars all the way down so far as it dropped, although some rats have been either leaving the ship, or talking about it. I'd hate to see what happens when they actually start unloading.