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

To: TH who wrote (9408)	7/9/2008 7:41:32 AM
From: Real Man	Read Replies (3) \| Respond to of 71475

TH, because they can't defend 72 forever. The forex market is much bigger than they are. Therefore, 72 goes down at some point, until the fundamentals warrant a dollar rally, which they don't at this point. Only Ben can defend 72 by raising interest rates. If he is just bluffing (likely), or does not raise fast enough, the dollar will go down, fast, and soon, as Ben loses whatever leftover credibility he has left. I do think he understands that, though.

To: TH who wrote (9408)	7/9/2008 2:34:39 PM
From: Real Man	Read Replies (1) \| Respond to of 71475

Dollar about to get sold, IMHO, despite ongoing "intervention". Like the treasuries, most agencies are owned by foreigners. It will matter this time. At least, in any other country besides the US it did. In fact, this has the bad smell of the start of the currency crisis stage of the dollar decline, when dollars and stinky agency bonds will get dumped on the open market for whatever one can get for them. Fannie, Freddie Downgraded by Derivatives Traders Over Capital By Shannon D. Harrington and Dawn Kopecki July 9 (Bloomberg) -- Fannie Mae and Freddie Mac, ranked Aaa by the world's largest credit-rating companies, are being treated by derivatives traders as if they are rated five levels lower. jessescrossroadscafe.blogspot.com