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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (77518)	11/14/2007 1:38:11 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

To save the banks from themselves? They are trying to prevent recession by trashing the dollar, and that appears to be the only way right now. It's inflate or die.

To: GROUND ZERO™ who wrote (77518)	11/14/2007 1:58:53 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

Actually, the dollar is getting trashed on it's own due to very poor fundamentals (trade deficit, which requires 2.1 billion dollars per day inflows from foreigners to keep it stable), but the Fed has drastically accelerated the dollar trashing by cutting rates. Now 400 trillion dollar carry trade is selling it. It only buys the dollar when the carry trade is in trouble. It actually buys the Yen, but the dollar benefits from the selling of other currencies to buy Yen. The dollar might have a brief bounce, but it is very unlikely that the dollar will change its course sans Fed hiking, and how likely is THAT? The buying comes from dollar peggers, countries that fix their exchange rates to the dollar, but their ranks are getting thinner and thinner.