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

To: GROUND ZERO™ who wrote (83709)	11/26/2008 9:40:47 AM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 94695

Two monsters are fighting, with what outcome? One monster is the derivative market The other monster is the Fed that lost all sense of proportion and is creating tons of liquidity to bail out derivative markets and trying to make volatility go lower with injected liquidity (the two are inversely related!) 7 Trillion the Fed made available could be enough for derivative markets, since notionals don't fully reflect the state of the markets. Then we go sharply up to get December puts expire worthless, and hyperinflation returns. If not, then ... <g> Lights out only if all that liquidity causes a run on the currency and the treasuries, the dollar moving down is not necessarily "it"