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

To: ggersh who wrote (26031)	1/5/2010 10:41:24 AM
From: Real Man	Read Replies (1) \| Respond to of 71456

This is roughly what popped in 2008, and how it was fixed. Right now the market is totally artificial, run for the most part by robots, and the next blowup is going to be even worse, just as derivative blowups got worse over time. 1987 crash was the first one. Yes, if we get the blowup, the dollar goes up, up, up (and vice versa, if the dollar goes up, up, up, we could blow up)! The dollar is the new Yen, only much bigger and a lot more liquid. And then there is that 500 Trillion notional fixed/floating interest rates swap market, in which the blowup could lead to sharply higher rates. But, you never know. Each party has a counterparty, and it all depends which side of the trade blows up. The Fed has simply taken over and guaranteed the losing side of derivatives, and printed a lot of money to pay up, so that our Ponzi-financial system recovers... to the state that caused the melt in the first place! <NG> usdcrisis.com