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AirelonTrading
Indeed. All they've done is print a mountain of debt, and now the real fight is with the bond markets.
Good to hear from ya too! :)
timothwc
"they're printing money... please"
my thoughts exactly
6Do6llar6
if they have adjustable rate , probably so .
But I guess that it will not be overnight :) they will be raising rates slowly hoping economy will start working again .
Looks like they got European bankers to keep dollar strong .I would be scared to short it .
jbat001
Interest rates at 20%!?
Just about every single american forced to default on his/her debts?
6Do6llar6
like what assets ? Real estate is not an asset anymore but a liability . we will simply tax the living shit out of them :)
6Do6llar6
good they are worthless pieces of crap anyways
6Do6llar6
of course ... but hiking interest rate to 20% will bring most of the world capital to us .
I'm just wondering what would that do to our economy .
AirelonTrading
It's going to be rough. Very, very rough. Taking advantage of it is going to be the real trick. Possibly short of the dollar, until that interest rate hike. And then, you'll have to be very very quick, because the dollar will shoot through the roof.
I'm also shorting all commodity rallies, as GDP contracts further as the US Citizen cuts back on his spending.
AirelonTrading
What the goverments will do, is always up in the air. But I do expect to see some of them try to go into a protectionist mode.
But yes, I see all sorts of those nasty scenarios. I see deflation, across the board, in every asset board. Heck, I think the pension funds, from what's on their balance sheet and holdings? They are already in default, but the audit really hasn't exposed that yet.
This October is going to be MESSY
jbat001
Dow at 2,000 (and other global indices in comparable positions) would be chaos.
You'd have occupational pension schemes in default, and all manner of really, really bad stuff happening. Forget economics, I'm talking social unrest and political upheaval.
We saw a big increase in the number of right wing and fascist parties elected to the european parliament this summer, and we've got a general election in the UK next year. At Dow 2,000, people would give up on equities for a generation. |