ManAboutDallas

$59 Billion Dubai Debt Default Could Have Much Wider Implications

"... strengthening of the dollar.. "? Ah, hahahahahahahahahahaha.

The DYX could barely mange any "hang time" above 75. Some strength, there. ( eyeroll )

The minute people realised they were panicing over a lousy $60 billion owed by some quicksand trap in the desert, the panic pretty much stopped.

This isn't 2008. The "Flight To Quality" this time is going to be just about anything that doesn't have George Washington's picture on it.


On Nov 27 09:56 PM VP of Common Sense wrote:

> So, if this event leads to a significant strengthening of the dollar,
> which it appears it has, does that mean a rapid unwind of dollar
> carry trade positions? And then a decrease in US equity valuations?

$59 Billion Dubai Debt Default Could Have Much Wider Implications

Mark! You forgot the essential disclaimer "Irony inserted here".

Yeah..... 60 billion.. wow.... chump change, these days. Barely enough to pay off most peoples' bookies.

And for all of you folks salivating over the prospect of some "massive short squeeze" for the US$, well sorry, not going to happen...... we'll have a couple days of the sort of Roman candle rally the $ has put on a few times already, but the surprise of this coming Gigantic Crash is that, unlike 2008, there will be NO massive flight to the US$, and when THAT reality sets in the REAL plunge in the $ will begin, and THAT is what will propel gold to $2000-$2500 and silver to $50-$60.

Sorry about your slave-state PuppetMeisters, Peter... what goes around, comes around, doesn't it ?


On Nov 27 01:44 AM Mark Anthony wrote:

> The $59B is a big deal when we know the US government is more than
> $12TRILLION in debts and the world feel its safer and risk-free to
> stay with a debtor that is $12T in debt, rather than with a debtor
> that is $59B in debt. Of course the world is absolutely horrified
> about the extreme risk associated with the gold, which owes nobody
> money.
>
> What an insane world!

Friday Outlook: Commodities, Global Markets

The rally has one more upside target, using the Dow as proxy. That target is DJIA 10,344 which is the 50% Fibo retracement of the Oct 2007 top to the Mar 2009 bottom.

A nice two-week, 700-point Dow rally into mid-October will get the Chumps nice and buttered for the Toasting-to-Three-Thou...

Last year was just the warm-up act, boys and girls.

Crack Shows Up in the Risk Trade

Or, to put it another way:

The SECOND mouse gets the cheese.


On Aug 24 11:30 AM Tony Petroski wrote:

> The guys who find out "how far to go" are those who stumble onto
> the remnants of those who "found out how far to go."
>
> Cheers.

Dollar's Weakness, Confirmed

Right on time, right on cue just like clockwork against the backdrop of too many $ bears, here's our counter-trend $ rally. My inate modesty prevents me from using words such as "brilliant", "inspired", "prescient", and "genius" to describe myself, but feel free to thank me any time you'd like. You're welcome.

Dollar's Weakness, Confirmed

With the entire grandstand dollar bears, and the real dollar players on the field near-record long, should be time for a breath-taking dollar rally that catches nearly everybody - as usual - leaning the wrong way at the wrong time. You buy weakness, sell strength; not the other way around.

That said, yeah it's going to be just a counter-trend rally, so have your chair bought and paid for when the music stops.