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

To: GST who wrote (85201)	8/16/2007 4:15:00 PM
From: regli	Read Replies (1) \| Respond to of 110194

I agree completely. This thing has only started and the consequences of the Yen carry becoming unglued will be even more devastating. The Yen bounce off 112 was impressive wasn't it? netdania.com

To: GST who wrote (85201)	8/16/2007 8:03:04 PM
From: SI Brad	Read Replies (1) \| Respond to of 110194

GST, > I see no reason, nor any ability for global markets > to do anything but go down for a while yet. As you know, a lot of hedge funds buy bonds, short the corresponding stocks, and leverage themselves to the point of inevitable self-destruction. The Harvard hedge guys have been blowing up in recent weeks, which perversely is creating upward drafts on the U.S. stock market. Yesterday was the deadline for 3rd quarter redemption notices...what would you do if you had $1 million in a questionable hedge fund. What happens when 10,000 millionaires give notice to liquidate? Plunge protection team theories aside, I think that might explain today's bizarre turnaround. The homebuilders are among the obvious accidents waiting to happen after the unwinding is done. I'm actually surprised GM has not been going up in this environment, given the leverage on its bond positions. It probably would have crashed by now were it not for the de-hedging process. Brad