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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Worswick who wrote (1597)	5/9/2010 11:13:41 AM
From: carranza2	Read Replies (1) \| Respond to of 2794

Zerohedge notes that John Hilsenrath of the WSJ has reported that Fed has opened swap lines to the ECB, ie., that the Fed intends to intervene in the currency markets. The ECB cannot go at it alone. The European banks are in a world of hurt so the CBs are again opening up the money spigots to bail out lenders who made bad loans, just as it happened here. Will the intervention involve supporting PIIGish sovereign debt and, if so, what form will it take? We'll learn tonight. Monday should be interesting. If the Fed is part of this, as it appears it will be, it will be shooting the USD (which is not a bad thing from its perspective as it devalues debt) but it will also make gold soar. It should go up even if the Fed is not part of this. This is getting very interesting. The USD bulls who are bullish on a flight to safety notion may be in for a surprise.

To: Worswick who wrote (1597)	5/9/2010 6:42:16 PM
From: Hawkmoon	2 Recommendations Respond to of 2794

CDS are going to take down every major currency, making trillions for the players. It will in time turn on the USA as it is already operating against the financially weaker Illinois and New York debt. Makes one wonder why sovereign governments/central banks can't just outlaw CDS and render judgements that they will not force CDS contracts to be honored. Hawk