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

To: Peter V who wrote (92446)	3/18/2008 5:46:42 PM
From: Oblomov	Respond to of 110194

Yes, exactly...the unwinding of the carry trade made arbitrage (which manifests as a snapback) possible. What is interesting is how unwind/snapback, the spike in gold and its reversal, and the collapse in oil and its recovery today all coincided. It makes me wonder just what the Fed and other CBs might have been doing behind the scenes. I don't think the timing and actions were some nefarious conspiracy, just the CBs saw an opportunity to scorch the sovereign wealth funds and macro hedge funds that seemed to be short gold and long oil, short the CMBX, and long the carry trade. And on top of it, the Fed got to take out BSC as an example for the other IBs.