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 : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (15845)	12/30/2008 6:23:05 AM
From: Real Man	Respond to of 71400

I don't think they can pump the dollar. That is a very large market. Kinda natural process of some sort of derivative chain reaction so far, as that thing runs and hides in treasuries -g- The rate swap portion of the derivative market (500 Trillion worth) is still waiting to blow up. When it does, I expect T-rates to sky. The fixed portion da boyz lent their money at will stay fixed, the variable rate (T-bonds) will sky. I do expect nothing will be left of the Derivative Ponzi finance when this bear market is finally over. The Fed gone mad because derivatives are collapsing, but they can't hold a quadrillion Ponzi market, so the legend says. They could print $2 Trillion, then it will just double to 2 quadrillion and THEN collapse. It is impossible to stop the collapse. They nurtured and guaranteed this Ponzi mess for 20 years until it outgrew the Feds. Now it's over. Arrest the Fed, not Bernie!

To: Secret_Agent_Man who wrote (15845)	12/30/2008 6:57:19 AM
From: Real Man	Read Replies (1) \| Respond to of 71400

The monetary chart in the head of the thread reflects the Fed's effort to stop the collapse of the derivative Ponzi finance scheme, one that THEY identify as the financial system. Reliquification, or simply liquidity, usually fixes the derivative market, but, but, but... can the Fed fix 1 quadrillion Ponzi gone awry? Eventually the answer will be No. I think that "eventually" is "Now" - No, they can't, and the whole mess will continue to unravel... Here is the chart.

To: Secret_Agent_Man who wrote (15845)	12/30/2008 7:55:47 AM
From: Real Man	Read Replies (3) \| Respond to of 71400

The collapse of the stock market in October correlated extremely well with the schedule for blown up CDS securities auctions, which is why I made a ton then timing the thing. Now it got more difficult due to ongoing Fed megaprinting machinations. They have been somewhat successful in reducing the VIX and especially narrowing the Ted spread, but corporate spreads rocketed higher, so the stock market can't find the bottom due to this. The time to short the market is when the T-bond gets really tired of this and craters, taking 500 Trillion in swaps with. Stocks may rally initially IF the corporate spreads come down, but eventually it will not be pretty. Not at all.