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

To: Real Man who wrote (734)	8/11/2007 7:19:42 AM
From: Paul Kern	Respond to of 71455

Could it be $30 Trillion notional CREDIT derivatives? Who holds the IRSs and CDSs? Have the been quietly collecting the premiums and are now declaring bankruptcy and disappearing the moment they are called on to pay up? Some of these small hedge funds consist of a file folder in an attorney's office in the Cayman Islands or the Channel islands and a bank account in Vanuatu. aaa-offshore-shelf-companies.com

To: Real Man who wrote (734)	8/11/2007 7:41:00 AM
From: RockyBalboa	Respond to of 71455

Could be. Meanwhile, I studied the last ecb report and it did not provide any clues except that the 10.9% M3 growth was the major concern and ECB started to limit credit to banks assured by its impression of ample liquidity available. Remember, this is the August(2007) report. They noted: buyoant activity, inflation right ahead the target (2.1%), a hefty rebound (+3.4%) in US Q2 GDP, recovery and zero inflation in Japan, China growing like always. only notable risks are: -possibility of potential abrupt shifts in global market sentiment leading to a repricing of risks" -from further increases in oil prices, from concerns about possible disorderly developments owing to global imbalances and from fears of rising protectionist pressures. On the monetary policy side, the ECB quietly refuses to acknowledge that their interest rate policy did nothing to cool the brisk M3 and credit growth to nonfinancial institutions - which expanded to 13.3% annualised in June and stays above 12% for a while now". Rather they state "Overall, rises in key ECB interest rates since December 2005 have influenced monetary developments" ecb.int One could say: In concert with its U.S., U.K, and Asian counterparts the ECB did nothing to prevent the bubble from growing and when markets themselves began to correct because of the lack of marginal buyers (as commercial credit suddenly dried up and additional margin was asked for) the ECB could only step in, provide short term liquidity and prevent collateral damage. They do what they need to do. They provide support of normal operations and do not want to interfere with market directions.