Scary Thought: the Fed just injected in one week almost the entire amount of liquidity it did in all of QE2 and it is barely enough to keep stocks from plunging.
The mass selling of stocks = massive amounts of U.S Dollars coming into the pool no? Sell your shit….what have you got?
Cash yes. Dollar index rises. Eezy Peezy.
All those margin calls and portfolio liquidations ( of whatever is still left ) have to go into “something” right?
= Cash. Yes.
= U.S Dollar and Japanese Yen as……these are the currencies that are so rapidly printed and used to fuel these bubbles, as they can be borrowed at near 0% interest.
When shit hit’s the fan….everybody sells stocks….and these two currencies rise “dramatically” in the wake. Kapeeeeesh? It’s call “repatriation”.
The U.S Dollar Double Top
This “Dollar Double Top” is effectively “done”.
USD now to be printed to the degree we’ve never seen before….
Scary Thought: the Fed just injected in one week almost the entire amount of liquidity it did in all of QE2 and it is barely enough to keep stocks from plunging.
Thanks for the post Kong… always appreciate your take? …ps made a killing shorting the euro .
Now u can make more buying it / shorting the U.S Dollar!
Go man go!