so if this passes, the dollar will be wrecked. What are you going to do to prevent against that? Short dollar, long another currency? Would you pursue employment opportunities abroad?
I have a question of similar relevance: Is it true if you don’t use it you lose it?
dollar is not neccessarily wrecked in the mid-term. short -term may be some heavy shorting. The assumption is that the fed pumps liquidity into the system to pay the 700B. Who is to say the $700B is poorly invested? When this mob mentality dies down and there a market for this stuff (ie what the trust buys), people will see that the pricing does not reflect the underlying cash flow characteristics, and rational pricing will return. this current environment is crazy, and not sustainable.
Gecco Wrote: ------------------------------------------------------- > dollar is not neccessarily wrecked in the > mid-term. short -term may be some heavy > shorting. The assumption is that the fed pumps > liquidity into the system to pay the 700B. Who is > to say the $700B is poorly invested? When this > mob mentality dies down and there a market for > this stuff (ie what the trust buys), people will > see that the pricing does not reflect the > underlying cash flow characteristics, and rational > pricing will return. this current environment is > crazy, and not sustainable. I think people need to keep in mind that this *IS* probably the only debt we will ever incur that’ll pay for itself out of its own revenues, OUTSIDE of tax revenue payoffs. *AND* this will generate revenues.
Gecco Wrote: ------------------------------------------------------- > dollar is not neccessarily wrecked in the > mid-term. short -term may be some heavy > shorting. The assumption is that the fed pumps > liquidity into the system to pay the 700B. Who is > to say the $700B is poorly invested? When this > mob mentality dies down and there a market for > this stuff (ie what the trust buys), people will > see that the pricing does not reflect the > underlying cash flow characteristics, and rational > pricing will return. this current environment is > crazy, and not sustainable. C’mon. We have the freaking Fed Chairman talking about a recession and our honorable VP-nominee from Alaska talking about the next Great Depression. What are the cash flow characteristics of trashy mortgages in a Depression? I remember - that’s irrelevant because we have hold-to-maturity pricing.