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

To: RockyBalboa who wrote (20832)	6/13/2009 6:13:35 PM
From: benwood	1 Recommendation Read Replies (1) \| Respond to of 71441

What a great anecdote to illustrate what a whacked-out, dysfunctional system we have in place that looks more like a Gambler's Playground than anything else.

To: RockyBalboa who wrote (20832)	6/15/2009 8:20:45 AM
From: Real Man	Respond to of 71441

You have to wonder what could possibly blow up in the derivatives land. My guess is the interest rates swaps. They already did a large 9 Trillion increase in December as bond crashed up. CDS did 2.5 Trillion in comparison. The difference is that they are not due now, and if rates really go through the roof, payments can become comparable or exceed the notional. That will likely amplify things in either direction. Just like bonds crashed up, they can crash down just as fast or faster, and rates soar to really strange highs. bis.org Since the Fed pegged them and it did not work, is that similar to a break of the peg in currencies?