Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (82008)	10/15/2008 8:14:21 AM
From: Real Man	Read Replies (1) \| Respond to of 94695

My thought is that the dollar should drop now as the libor rates drop. The reason for the sharp rise was that libor got an effective rate hike even as the Fed dropped rates. Now that the Fed offered unlimited cash to stabilize libor, it will reconnect with the T-bond rates. I could be wrong, all IMHO, but here is the chart of what I am talking about. You can see that the libor hike correlates well with the dollar making its bottom in March. Basically it's a failed monetary policy. The Fed lowered rates, but the market didn't, it hiked rates where they were back in January. The dollar followed. Another thought - so far no asset seems to be safe from the current rout. Everything got whacked including government bonds, stocks, commodities, and precious metals. Just one stunning bear rout with no place to hide. This is very bad and is deflationary, for now. If the libor does not reconnect with the T-bonds and stays stubbornly high despite the Fed pounding on it, then what? Got cash? -g-