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

To: Real Man who wrote (33424)	12/14/2010 5:16:49 PM
From: ggersh	Read Replies (1) \| Respond to of 71448

I thought they do it everyday already! -g-ng- To infinity and beyond! -ng- Back to the willies, how does one believe he gives one iota about the U.S. economy?

To: Real Man who wrote (33424)	12/14/2010 5:44:36 PM
From: MythMan	Read Replies (1) \| Respond to of 71448

They said that from day one...600 bill is a starting point...

To: Real Man who wrote (33424)	12/14/2010 5:49:58 PM
From: gregor_us	6 Recommendations Read Replies (2) \| Respond to of 71448

Because US housing is now in yet another terrible position, (despite the ongoing claims of some foolish SI posters who for years have fantasized they work for hedge funds and manage money), I think it's likely that the FED will be buying MBS again before Q2 2011 is over. As you know, housing is already double-dipping--as predicted by anyone with common sense--and there's no wage growth, no job growth, and no credit growth to revive it. Worse, lending standards are tightening considerably. While we will no doubt see some nibbling around the margins, such as some hot money from BRICS coming into Miami to buy some cheap condos, there is really no way to globally arbitrage US residential RE. And now of course, interest rates are rising. I think the FED will try to create an almost separate interest-rate market for housing by 2011. This operation too will fail. The other possibility is that they let housing deflate more but we know what that will do to bank balance sheets. Which is what the FED cares about most, of course. 2011 looks to me as the year when the trapped housing market finally becomes truly unsolvable. Knock on effects will of course hit state and local tax revenues all over again. The witches brew of of a weak dollar, rising interest rates (falling US treasury prices), descending municipal bond markets, and food and energy inflation looks ready to finally unfold in nasty fashion in 2011. Of course, for the individual investor, there are solutions to what awaits us. :-) Best, G

To: Real Man who wrote (33424)	12/14/2010 6:25:40 PM
From: John	Read Replies (1) \| Respond to of 71448

"The Committee will regularly review the pace of its securities purchases and the overall size of the asset-purchase program in light of incoming information and will adjust the program as needed to best foster maximum employment and price stability." Translation: "The U.S. equity markets shall only appreciate until our Wall Street corporate masters instruct us to initiate depreciation. When that happens, you may slowly realize the change over time." -ng-