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

To: stan_hughes who wrote (7038)	5/7/2008 7:10:50 AM
From: Real Man	Read Replies (2) \| Respond to of 71454

Hard to say. The Fed backstopped derivatives with huge liquidity infusion, so it's goldilocks trade now - long stocks, short gold, short US treasuries, long risk. I guess derivatives bubble blows up with the Fed. These instruments notional will keep rapidly expanding to infinity until they blow up. One can argue it's already there, but.... the Fed now took the counterparty risk, so they are essentially promoting much more leveraging. Commodities can have shortages, so derivative based suppression does not always work. I wonder where is the limit to this mess.