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

To: RockyBalboa who wrote (751)	8/12/2007 1:31:43 PM
From: Metacomet	Read Replies (1) \| Respond to of 71475

Begs the question how the long term excesses can be undone safely.. Yup... And maybe it's just me, but I don't even see any serious discussion about how to deal with the underlying problems. There is still a Santa Claus like belief that everything will magically self-correct. You might hope that there would at least be some interest in exactly how this process was permitted to metasticize and whether there ought to be some prescriptive policy initiatives.

To: RockyBalboa who wrote (751)	8/12/2007 2:32:11 PM
From: Real Man	Read Replies (2) \| Respond to of 71475

Yes, only they have been doing these short term fixes every 3 months in a form of coupon passes for a long time. Now they are 1 month late with another series. I suspect the Fed will panic and print. They have not yet printed, these are temporary repos which will have to expire. I suspect they would rather print than let the liquidity be returned. Then we just see what the dollar does. Most likely dollar will drop sharply, then it is very likely that this game will no longer be effective. They pushed it to the limit already. See the quote in the title of the thread about what is next - the dollar crisis. All IMHO. Once foreigners start selling US bonds, the game is truly over. The market won't be able to handle $100B a week in reverse coupon passes.