bbzz24

Profiting from the $700 Billion Bailout

'Doing nothing will probably catalyze a global recession and sink the Dow to 8,000 or lower. Tens of millions of people around the world will lose their jobs and their homes, triggering a surge of inflation that will make the U.S. dollar worthless.'

HAHAHA....
How is this going to happen? Aren't the problem assets only home/auto/credit card loans made in the U.S.? The worst that could happen is contraction in credit (acutually good) and contraction in manufacturing in China/Japan in their export industries. The latter can trade with themselves more: cars for toys and rice.

Interrelation of Asset Classes: A Few Market Themes

not due to increasing globalization but due to increasing use of leverage all asset classes become interwined due to the need for collateral in the prime broker account.

Trichet: ECB Has "No Bias"

Although not explicitly stated, it is clear that the ECB believes that eurozone growth is not the major factor that contributes to eurozone inflation.
Commodities prices are the major input for the heavily industrialized eurozone economy and they dictate prices. Growth on the other side is much more dependent on external demand than on inflation (very clear from the developments over the past year). Given that Trichet's only concern is to prevent second round inflation effects.

Has the Dollar Bottomed?

hehe. your 'fundamental' analysis seemes really selective. the chinese already are reducing their purchases of U.S. gov't debt. now they want to invest in euro p/e funds (no more blackstones). the arabs are doing that for quite some time. doesn't this look like a predicate for slowed borrowing and higher interest rates as well due to slack demand? and doesnt this lead to slowing U.S. economy which would lead to further shrinking of the trade deficit.

to me it looks like you are just trying to spin the imminent delevering of the U.S. economy into 'fundamental strength'. and have you wondered why the government has to run 6% of GDP budget deficit and a SIV (aka war on terror in Iraq/Afghanistan) that accounts to another 3% of GDP, and another 1% on 'fiscal stimuli' to avoid the technical definition of recession: shrinking GDP. 10% real GDP deficit spending to inflate the economy with 1-2% 'growth'! i guess steroids are not banned in the congress either. for how long these 'fundamentals' can hold on?