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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: zamboz who wrote (101747)	2/28/2009 3:24:39 PM
From: Box-By-The-Riviera™	Read Replies (2) \| Respond to of 110194

it is the derivitives driving the "financial" sector bail outs. 56 trillion of counter party risk. the question is, will it work. it only takes one relatively small fire to start that trash heap burning. and it could arrive from anywhere. That's why GM has a seat at the table. it's not the jobs or the cars. same with GE eventually. Same in particular with AIG, Citi and so on. Lehman showed them what might happen. But it could still well happen. Either here, or starting somewhere else. Why do you think the EU is sending money to eastern europe now? Same thing. It could start anywhere at anytime, now, a year from now, years from now. Why has scotland just bankrupted itself, along with austria and swizterland in name if not in deed? Why is britain fast approaching it? same thing. Iceland was a cakewalk comparatively speaking.

To: zamboz who wrote (101747)	2/28/2009 3:51:05 PM
From: Robin Plunder	Read Replies (1) \| Respond to of 110194

nice chart of dollar value...the fiat dollar is the fundamental issue i believe, because most of the derivatives are actually a result of the existance of fiat money, ie, we need to hedge against interest rate and currency flucuations which would not happen under a gold standard. "stimulus first. It has always worked in the past. Things might be very different this time." the repeated stimulus over decades is another factor which caused our large debt increase...and the stimulus is only possible under fiat money, where it can be endlessly printed.. robin