> dd: Yuan devaluation, break of the HK$ peg.
> Boss: Insolvency of big US bank due to bad retail debts.
> Spanish chap: Asset-backed securities market falling over due to rate
> rises, a la 1994
> Tame Nog: US margin debt
> Idiot-boy the Trainee: Rogue trader at big investment bank
>
>
How about a run on the unregulated, uninsured parallel banking system run by money market mutual funds, once people realize that, no, Virginia, MMMF balances are not the same as cash?
And why would China devalue? They have a shitpile of foreign currency, so it seems unlikely they would ever be forced to do so. I would think they have enough Yank IOUs as it is, so I don't see why they'd want to.
-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at ee.cornell.edu Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique