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

To: ggersh who wrote (26244)	1/11/2010 10:11:40 AM
From: Real Man	Read Replies (2) \| Respond to of 71426

There is explicit government manipulation of the mortgage market and there are 10-s of trillions of explicit government guarantees in the derivative market. This drives bond risk spreads lower, and, as a consequence, stocks higher. Thanks to machines that explore everything under the sun, risk has become one trade. What was not correlated is now correlated, so all markets melt down together (and come out of meltdown together). Actually, this is pretty bad. It means the derivative bomb tried to detonate (a nuclear chain reaction, BTW, the domino effect), but all they did was reset the countdown. The set of dominos includes the government, a major losing counterparty. Folks who believe the "PPT" manipulates the indexes are mistaken. The derivative situation is much, much worse. The bubble ties together all markets, even many individual stocks have futures (and options, of course). Robots scan the market for trades, determine correlations, and trade in agreement with variations of the same program. Scanning 5000 plus issues is not that difficult for a robot. In other words, there is no "PPT" per se, this is derivative bubble that has grown to a really grand scale. The Fed was always enabling it! They did it again in 2008! The only difference is that an action on grand scale was required.