Reply #21: No need to get snippy about it [View All]

[oblivious]

"Perfect storm" voodoo? Huh? It's become a catchphrase it's been used so much in financial publications in the past two years.

The ingredients:

1. rising oil prices

2. rising trade deficit

3. rising Federal budget deficit

4. 2 and 3 leading to rising US debt

5. rising interest rates - expected on Thursday - indicating there is not enough foreign money coming in to cover the current account deficit - if there is no rise, I say the dollar will start falling again - if a small hike isn't enough to bring the money in, rates must go up or the dollar must continue its fall.

6. falling dollar -- up a bit recently, but still down almost 30% against the Euro over the last two years, and see #5 -- headed lower unless interest rates are pegged high enough to attract enough foreign capital.

7. rising and risky federally subsidised mortgage debt

8. real estate bubble

9. rising personal debt

10. Huge derivatives held by US banks - financial WMDs to use Warren Buffet's term that could explode with rising interest rates

and so on