If the fed does cut rates next meeting, will our foreign friends accept losing even more on their US investments. If they dont buy the debt, sooner or later the FED will get caught buying the deb themselves and the dollar will calapse even faster.
I keep trying to find an investment strategy that can use this scenario to make money. The obvious plays, puts on HomeDepot, Lowes, the home builders are already priced like a recession is a reality. Gold is already doubled, gold mining up 85%. I was surprised to see calls also priced through the roof for early 2007, like the FED can create another dot com like bubble in the S&P or Dow.
If the fed does start cutting rates, who knows where they will stop.
