4. Watch China sell off their USD positions, interest rates gone through the roof, hyperinflation and Condos in NY going off for 1000 Euro.
China wont rock the boat since it has the Olympics in a year.....they want everyone happy for that deal there will be a war of words and the US has no ammo
Seriously, I wonder what the actual price impact on the bond/treasury market would be if china sold all their debt on the public markets. Also think if the treasuries were sold off, I assume China would move to bunds or some other instrument. The spread between bunds and treasuries would be gigantic, and market forces might serve to actually create demand to -replace- Chinese buying. The 'obvious' doom and gloom is not so obvious when you actually think about it.
china will just take their xs cash and buy US assets for pennies on the dollar...... they'll end up owning it all anyway
Exactly....I think the market finally came to that conclusion today. Wait till 13k-even on the Dow gets taken-out....that "event" will shake a lot of people out. Wait, that could happen TOMORROW !!
not that a bailout is coming, but to bail out anybody, you have to have a functioning market..... credit is frozen and the asset market is in freefall............ everybody wants to go to heaven but nobody want to die first...