reply to post by buddha
The options and futures markets are not completely controlled by individual investors or investment houses.
There are government control mechanisms all the way to the global G7 G20 groups.
Obviously the powers that be are not going to make this sort of gambling too easy to win at.
The Euro has been falling since the beginning of February from a high of 1.36 against the US dollar.
Its obviously broken trend to the downside which often creates margin calls due to gambling with borrowed money.
The other elephant in the room is the S&P triple top, here is a bear synopsis.
triple top
elephant
Actually the Fed was smart not dropping interest rates too quickly, with the prime at 3.25 there is still room for more meaningful QE.
Japan dropped their interest rates to near zero but still remained in a deflationary economy for almost a decade.
negative Japanese CPI
Despite the past Quantitative easing banks in the US are still often requiring perfect credit to get a mortgage and American Express is turning down
credit card applicants for people with Experian scores over 800!
The Federal Reserve has held off dropping interest rates for quite a while now so it would probably require a major market reversal to prompt such an
action. Inflation in the US is still around 2% so we are not in the same spot Japan was with the negative CPI.
edit on 24-3-2013 by
Cauliflower because: (no reason given)
edit on 24-3-2013 by Cauliflower because: (no reason given)