Fri, 11/06/2009 - 11:46
#122558
dr doom is one of my favorite characters in this nightmare we call reality
he sounded the warning along with other notables
but lately he has been sounding a warning about a collapse in the dollar carry trade...the fall of a commodities bubble and a snap back of the dollar??? what?
...dollar "snap" back...look im not half as smart as roubini so who am i to say
but
hey, how the hell is the USD gonna snap back when the fed and the whitehouse and congress are pumpin like a teenage boy into his hat at a porno theater
is the fed gonna liquidate its portfolio of ABS (that big bag of mark to model crap)
and , or is the fed gonna soak up liquidity with reverse repos...or raise the fed funds rate...or stop supporting treasuries?
some combination of those actions, for the foreseeable future, would smash this country to pieces like a wooden row boat onto the rocks of the portland lighthouse in a gale
and in the midst of the deepest recession since the GD what commodity bubble does nouriel have in mind
no doubt gold, oil and a host of other flight to safety commodities will rise, some dramatically...and then fall...but i think (guess) the rise aint done risin and the fall is even farther away
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