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

To: John Vosilla who wrote (90919)	1/28/2008 12:06:21 PM
From: Rarebird	Read Replies (1) \| Respond to of 110194

<<It is all about saving the banks at any cost.>> Do you think they will be successful? If the banks go under, John, the foundation of the system, based on credit expansion, crumbles. To build a good foundation, the bad roots must be weeded out. But the powers that be that control this system (and are represented by both Bush and Clinton) will never accept defeat. "They" will do whatever is necessary to maintain the staus quo and fight to the death to preserve their bankrupt system, even if that means destroying the civil liberties of (and bankrupting) almost all Americans in the process.

To: John Vosilla who wrote (90919)	1/30/2008 7:03:52 PM
From: Rarebird	Read Replies (4) \| Respond to of 110194

<<It is all about saving the banks at any cost.>> Is Ben Bernanke the financial savior here? I think not. Sure, as Fed chairman, Big Ben desperately wants to ensure that no major US financial institution goes broke. As Fed chairman, Big Ben thinks he can write that insurance. The major problem in Big Ben's game plan is if the USD crashes. The US Dollar Index is currently trading slightly above the November 2007 low of 74.86. There is no support under that level. I know it is unthinkable for many, but if the US Dollar Index does plummet below 74.86, US Treasuries may be the next asset class to be sold hard. The break can happen at any time. Big Ben knows this. He knows (along with Sec. Treasury Paulson) that a US Bank can suddenly crash into bankruptcy at any moment. That is why he has panicked and lowered rates 125 basis points in one week.