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


To: Real Man who wrote (25179)12/4/2009 11:35:46 AM
From: ggersh  Read Replies (1) | Respond to of 71403
 
Vi, great call! You work for GS? <vbg>

You think this carry trade, trade, can get

real ugly this quick?



To: Real Man who wrote (25179)12/4/2009 2:07:15 PM
From: John Vosilla  Read Replies (1) | Respond to of 71403
 
So do you expect something similar to WWII with an extended period of low yields and high inflation? This is the make or break scenario going forward IMHO that could creat a new boom period a few years down the road.

One alternatives is stagflation like the 1970's with another bad recession down the road. Or perhaps the scenario no one talks about which is a prolonged muddle through period with rates rising at a slow pace and a stable economy with above average unemployment rates and rising savings rates as Mish's deflationary talking points allow large deficits and treasury back end monetezation to continue unabated without severe ramifications to the global economy.