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

To: Cynic 2005 who wrote (15573)	12/17/2008 10:21:56 PM
From: Real Man	1 Recommendation Read Replies (1) \| Respond to of 71475

Bond market gone bananas and is overdue for a reversal. There is nothing to support current interest rates but the Fed and a lot of air, since the sovereign risk is huge. So far the market dynamics has been that stocks move against the bonds and the dollar, but in a currency run they all fall together, as the Central bank rushes to raise rates to defend the currency. We are not there yet, IMHO. Quite the opposite to a "rush to defend the currency" is happening at the Fed, they are letting it dive and intend to print money to buy bonds along the curve, which is why the bond market went bananas. So, think of Spoos as Zimbabwe industrials. Close enough. -g-

To: Cynic 2005 who wrote (15573)	12/17/2008 10:42:20 PM
From: Real Man	2 Recommendations Read Replies (1) \| Respond to of 71475

Note that the 2002-2007 "bull market", in fact, never happened. It was a mirage masked by the fall of the dollar. Stocks fell slower than the dollar, that was all that was to that "bull market", the Fed's largesse. So, the Secular stock bear market lasted 8 years now. You have to price stock indexes in gold to see the real picture. Now that the dollar is falling fast, stock market is in a rally mode. However, in Euros Spoos are at October lows. -g-