Helicopter Ben - start your engine

4. Watch China sell off their USD positions, interest rates gone through the roof, hyperinflation and Condos in NY going off for 1000 Euro. :)
 
China wont rock the boat since it has the Olympics in a year.....they want everyone happy for that deal

there will be a war of words and the US has no ammo
 
Quote from eusdaiki:

4. Watch China sell off their USD positions, interest rates gone through the roof, hyperinflation and Condos in NY going off for 1000 Euro. :)

Seriously, I wonder what the actual price impact on the bond/treasury market would be if china sold all their debt on the public markets.

Also think if the treasuries were sold off, I assume China would move to bunds or some other instrument. The spread between bunds and treasuries would be gigantic, and market forces might serve to actually create demand to -replace- Chinese buying.

The 'obvious' doom and gloom is not so obvious when you actually think about it.
 
Quote from scriabinop23:

we have two choices:
1) bail out the morons. fed no longer is forced to cut rates and destroy the dollar.
2) have a housing collapse. force the fed to cut rates in inflationary setting. devalue the dollar.
you can't win.
Exactly....I think the market finally came to that conclusion today.
Wait till 13k-even on the Dow gets taken-out....that "event" will shake a lot of people out.
Wait, that could happen TOMORROW !!
 
not that a bailout is coming, but to bail out anybody, you have to have a functioning market.....

credit is frozen and the asset market is in freefall............

everybody wants to go to heaven but nobody want to die first...
 
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