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

To: Real Man who wrote (5114)	3/17/2008 8:30:57 AM
From: stan_hughes	Read Replies (1) \| Respond to of 71442

Admittedly the draining has an indirect effect over time, but if you look in the Journal today you'll see an article blaming the Carlyle and Bear problems on the effects of simple plain vanilla risk aversion (or credit revulsion, if you prefer) which tightened up the repo market enough that our now-extinct friends couldn't roll their loans any more -- Message 24410552 Unfortunately for everybody else out there, that repo market is still tight, and it's getting tighter with each passing credit event The classic line in that article is, "I'm worried that I'm lending my cash to someone who may in turn be lending it to hedge funds or others that are in trouble" At $4.5T the repo market is beyond Fed management. It's going to take more than a few Taffie rabbits being pulled out of Ben's hat to change a mindset of credit revulsion