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


To: carranza2 who wrote (92083)3/9/2008 9:28:49 AM
From: TH  Read Replies (2) | Respond to of 110194
 
carranza2,

Agree. And, maybe last week they got a wake up call from the Gulf States that unlimited tolerance of dollar weakness will not be supported forever. Seems like the statement was a line in the sand.

So, we might be in for a dollar bounce. Time to adjust accordingly. If it does bounce, then illusion is reality again, for a limited time perhaps, as nothing fundamental has changed with a ten billion drain.

GT
TH



To: carranza2 who wrote (92083)3/9/2008 2:17:13 PM
From: John Vosilla  Read Replies (1) | Respond to of 110194
 
'I cannot believe that Bernanke is fool enough to let the dollar cavitate in an unlimited fashion.'

I'd bet Ben hopes for a world where perceived inflation is contained at 2-3% allowing him to drop fed funds to 2% for a good 12-18 months, the 10 year treasury stays under 4%, broad money supply in the US and the other major currencies grows at 15%+ and our dollar stops sliding. Everyone talks about the US credit crunch and dollar implosion... well if the dollar keeps sliding a horrific global housing crash in bubble markets in the Eurozone and rest of the free world is assured IMHO..