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

To: stan_hughes who wrote (5134)	3/17/2008 1:21:32 PM
From: CynicalTruth	Read Replies (1) \| Respond to of 71456

This quote says it all: "At this point, it should be apparent that rate cuts are destabilizing the system. They not only damage Federal Reserve credibility, they are battering confidence in the dollar and US financial assets more generally." And looking for another 1pt drop in rates later this week..... Looks to me like they are trying to crash the dollar as far as they possibly can... Might as well go negative with the rate and charge Ma & Pa to keep their savings in the bank.....

To: stan_hughes who wrote (5134)	3/17/2008 1:46:45 PM
From: Real Man	Read Replies (1) \| Respond to of 71456

He sure is playing our song, and I think it started in late February. Gulp! "There are now forecasts for a 100 basis point cut in the Fed funds rate for Tuesday. Many are arguing that financial and economic developments support even more aggressive Fed rate slashing. I am reminded of the joke of the entrepreneur that loses money on every sale but is determined to make it up on volume. At this point, it should be apparent that rate cuts are destabilizing the system. They not only damage Federal Reserve credibility, they are battering confidence in the dollar and US financial assets more generally. With the financial crisis having reached the core of the US credit system and the currency markets having turned disorderly, we’re now on dollar crisis watch. One of my greatest fears has always been an unwieldy dislocation in the currency derivatives market."