The unpleasantness in the markets today could be just a preview of coming attractions if the dollar were to collapse because of foreign disgust with US fiscal and monetary policy. The entire House of Cards seems to be on the verge of collapse.....
The only thing holding up the markets now are one off rescues and questionable accounting..... My hunch is that the Dow goes to 8000 this summer, even without a major collapse....and I expect the 10 year bond to be a 6% by the end of the year.....this will be a combination of Greenspan rate hikes and foreign selling of bonds during the summer......
Who would hold debt instruments now?
