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

To: ggersh who wrote (25673)	12/17/2009 8:30:53 AM
From: Real Man	1 Recommendation Read Replies (2) \| Respond to of 71456

That's pretty much what everyone did last year. The Fed's response was not unique. It was quite parallel to Britain's (which had a worse Re bubble IMHO). It was not done out of conspiracy theory. It was a universal response to all this crap blowing up. Either you print some and give it to the banks, or you print some and give it to the people. Net-net the result is the same. The banks paid bonuses instead of restarting lending, because they know the game is over, and they know their balance sheets (Something they no longer honestly report). Besides, it is true that a bonus on WS is essentially the 13-th paycheck. So, while folks are outraged, the culture is different. TSHTF happened last year, now we are just rolling forward. Gonna take some time, and I bet even the Fed's current prediction (unemployment coming down in 6 years) will prove to be optimistic, with more possible blowups along the way. In 2010 it will be some countries. -ng- My "theory" on why WS is paying huge bonuses is rather simple - they know. So, rats are leaving the ship at the expense of shareholders. They were the ones to buy the lows, now hoping to unload on J6P at high prices, but I don't think they will find J6P buying. J6P is broke and is not benefitting from stock bull. So, stocks will roll over in due time, unless of course, Ben unleashes a printing tsunami, for which I am prepared. It is quite possible for him to devalue the dollar 10-fold. He's the type who will do it. -g- As long as unemployment stays this high, they will keep printing and stimulating, which looks very bad for the dollar in the longer run. Sell your gold only if you truly believe we'll get out of chit soon.