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

To: Real Man who wrote (3796)	2/1/2008 7:04:34 PM
From: RJA_	Read Replies (1) \| Respond to of 71463

Vi, You have any support for this, other than the chart?

To: Real Man who wrote (3796)	2/1/2008 7:24:38 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 71463

Internet buzz with no confirmation From my friend who is a bond trader (emerging markets) "The ECB came out with a statement that US$ funding liquidity is now adequate, which the market has interpreted as meaning they won't be renewing the US$ term auction facility, which is essentially how the European banks funded their US$ needs over y/e. This caused quite a nasty move in US$ interbank lending markets, cross-currency swaps and short-end credit sensitive derivatives today. The ECB can always re-instate the facility if things get too nasty again, but the patient (the financial system) responded rather poorly to the first, very small attempt at being taken off central bank life support. I know this seems counter-intuitive to a falling US$ exchange rate, but there's still a shortage of US$'s in the world - ie. they're still being destroyed more quickly in the financial system than central banks can create them."