News Focus
News Focus

ogm

Followers 13
Posts 3220
Boards Moderated 0
Alias Born 08/09/2004

ogm

Re: basserdan post# 397880

Saturday, 06/04/2005 3:02:21 PM

Saturday, June 04, 2005 3:02:21 PM

Post# of 704041
I have a little scenario too.

All this extra liquidity puts pressure on commodities, and first of all oil. And on the dollar. In turn simultaneously choking the consumer, exporters (due to higher dollar vs other currencies), and domestic producers due to higher energy costs.
That in turn will renew fears of inflation and will force the Fed to continue hiking and long bonds to start selling. Increased interest rates will in turn hit the housing bubble, which will implode taking down the rest of the economy with it.

I think Extra liquidity from the Euro debalce is only accelerating the events, and not delaying them.





Unleash the power of Level 2

Spot liquidity moves with access to US order books.

Sign Up