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


To: Paxb2u who wrote (78189)12/13/2007 12:40:58 PM
From: Real Man  Read Replies (1) | Respond to of 94695
 
Well, I believe we've seen increased market management
(read: manipulation) since 2002 bottom, which makes these
markets prone to a large meltdown in a short period of time,
but extremely stable against SMALL meltdowns.
It is impossible to guess if it will occur now, next year,
or in 2010. However, as long as the Fed keeps things afloat,
the total notional value for all derivatives will keep growing
exponentially. I expect 1 quadrillion by 2009 if nothing
happens, currently 516 trillion (300-something in 2006),
and messy ( that's why the
Fed is so worried.) A hyperinflationary scenario in which
these derivatives become normal without deflating is also
a possibility.