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To: Trumptown who wrote (405025)5/18/2010 10:51:42 AM
From: Real Man  Respond to of 436259
 
Yes, very strange market logic indeed, and machine induced.
Fed prints, ECB doesn't, so Euro bonds default and Euro drops.
There are more dollars, thou. Euro is sold solely based on
crappy country credit rating. -g-

I would think the dollar must drop, rationally, cause there
is no lack of supply. But that may be coming eventually.
Europe is taking the red pill.



To: Trumptown who wrote (405025)5/18/2010 11:03:14 AM
From: Real Man  Respond to of 436259
 
> only nit is that the presses can be turned back on....

True. However, the govt. may need a new 5-year plan for
that and will need to collect all the necessary signatures.
That chit takes time, and they also seem to lack proper
comprehension of the situation. <G>

As we have seen on Thursday, the markets can be quite
fast, with the only buyer not showing up. In other words,
they might be late and start the press after we crash. -g-



To: Trumptown who wrote (405025)5/18/2010 11:19:58 AM
From: Real Man  Read Replies (1) | Respond to of 436259
 
In general, the Fed is not a drug dealer, even thou thoughts
like that were present on this thread. They must broadcast
the printing, and they have been under the gun by the public
and especially the congress for doing the QE. If they don't,
they may go to jail. Ben almost lost his job. They
don't want that, and they may not be able to print some more
because of the public outrage with the printing effort that
just ended. If Ben attempts some more printing, there will
be some more drilling involved.

In other words, re-starting the printing presses is not
as easy as it seems, and this thread consistently assigns
more power to the Fed than it really has, including some
backdoor dealings. That happened, of course, but NOW is
very different from 2008.