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

To: RJA_ who wrote (11058)	9/12/2008 9:16:08 PM
From: Real Man	6 Recommendations Respond to of 71484

The editor of nowandfutures is SI Bart, and here is his post: Message 24866673 If it's done quietly, it's no longer intervention, it's manipulation, which seems to have been going on, according to Bart. Nothing new there. Surprise cuts on expiration weeks are just that, and we've seen two - one in August 2007, one in January. Unlike intervention, which is usually announced to all, manipulation benefits select few who know about it. It seems the US authorities prefer to operate that way <G/NG> By taking surprise action on expiration week (a cut, say, when the market is down), they take money from option holders (hedge funds, traders, etc.) and others with winning positions and transfer them into the pockets of Market makers, WS firms. If funds do that kind of thing (take delivery in commodities to run the market higher on shortage), they go to jail, and some did. It's all done for the greater good of protecting the financial system <G> You almost have to be long in this silly propped market, cause nobody will object the Fed killing a few bears. Long, and praying S. does not hit da fan next week, cause eventually it will, with derivatives (read: control) market running into a notional of one with 15 zeroes behind and doubling every year.

To: RJA_ who wrote (11058)	9/12/2008 9:48:11 PM
From: Real Man	Read Replies (1) \| Respond to of 71484

Derivative markets have evolved into one huge control mechanism. Without them 5 billion ESF money would never be enough. It seems stuff must hit da fan at some point, it can't grow to infinity. The process has started, but so far it seems to be the process of eating up the losing counterparty for peanuts, consolidation of players. We never had a bubble like this one before, so history is not a good guide of what will actually happen. We've seen CDOs hit da fan, though, and that was not at all pretty.