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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?


To: stan_hughes who wrote (394)7/17/2007 10:13:57 AM
From: Real Man  Respond to of 71445
 
It can't be - the Fed and the treasury know the risk, and are
standing by with liquidity injections and other measures should
systemic risk develop. They keep talking about it, at least.
-g- All risk is being off-loaded on the system through
use of derivatives. This will
continue until the system can't hold all the risk anymore.
The bets that it will hold are extremely leveraged. Feb.,27
was a mini-BK new style. It goes limit-down in 1 minute through
delta-hedging. Lack of liquidity is all it takes. 500 Billion
of leveraged LTCM style bets on the system and timely
liquidity. What happens when those go bad? I guess da bulls
are right, and this will continue forever. -g- Yes, I continue
to believe that IF we go down at all, it's gonna be meltdown
style.