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

To: ggersh who wrote (17016)	1/30/2009 3:44:33 PM
From: Real Man	Read Replies (1) \| Respond to of 71432

Them Europeans already did that, but we are still thinking. We have this free market faith going. Besides, you only nationalize 'em if they fail. So, if they decide to start something, it will likely be just C or BAC, or both. -g-

To: ggersh who wrote (17016)	1/30/2009 4:16:45 PM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71432

The regulators of course knew about derivatives, but everyone was scared to even remotely touch those and supported them whenever that market stumbled, creating even a bigger, horrible, bubble in the process and a lot of moral hazard. There is a straight way to lever up and profit big if you know the black swans will be at bay thanks to the Fed. And so C, JPM, and BAC did. So did a bunch of hedge funds lately. The Fed did not want to get the blame for the meltdown we are going through. AG could have regulated them while the bubble was small. He promoted growth instead, so that the meltdown does not happen on his watch. This Ponzi was headed for a crash, and we just had one this Fall. It has to painfully unwind, or do so through nationalization of the biggest players (C, BAC, JPM) and cancellation of outstanding contracts. The derivatives are of course "netted", but it became very clear this is the tail that wags the dog - which was IMHO why the markets appeared manipulated. They always returned to the mean thanks to the Fed injecting liquidity at crucial moments.