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

To: RockyBalboa who wrote (1236)	9/30/2007 8:53:24 AM
From: Real Man	Read Replies (1) \| Respond to of 71409

Some dark matter. Since the net of credit derivatives agreements is zero, you never know who is in trouble until they blow up.

To: RockyBalboa who wrote (1236)	9/30/2007 9:17:47 AM
From: Real Man	Read Replies (3) \| Respond to of 71409

Citi has canned a lot of their credit card rewards offerings, which other banks, such as AMEX didn't. I had 30 bucks in netbank, I'm sure I'll get it back. But, I'm glad that was just a dead open account. -g- This blowing up stuff does not comfort me at all. How do we stay safe? If every bank blows up, will FDIC then pay a hefty sum with many zeroes? Will the dollar continue to crater or will it rally now? Will gold crater now? Good questions. I think we are now in really uncertain times of frequent blowups due to all the HUGE bad debt out there. Derivatives are bilaterial OTC agreements, or they are traded on exchanges (a much smaller %) An entity that blows up will have to close its positions. We'll see more volativity soon, of that I'm certain. Quite likely a tanking market, as entities in trouble sell their stock portfolios to raise cash. We've seen that in August.