Tuesday, March 06, 2007

Bet could melt Wall Street

It appears that the stock market is crashing. People are pulling money off the table. The investors are selling dollar and buying yen.

Investors borrowed Japanese money at 0.5% interest and the bought stock with that money. Now they are selling the stock in a frantic attempt to pay back loans. This could melt Wall Street.

The best that stocks would go up was in error and now it is time to pay the piper.

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