re: ["Another thing that you have failed to mention
is what is it exactly that Paulson is doing that
everyone will HATE, but is good???? Again, you led
the board to think something was going on, but you
wont say what!!!"]
What Paulson is doing is now pretty obvious...
what more needs to be said?
He made the rounds prepping Global Central Banks prior to
orchestrating this badly needed and over-due shakeout
of the Yen-carry trade.
China has been stone-cold silent.
No rush out of Dollars, or US Treasuries.
And no run to gold.
The exact opposite of everything predicted by the
gold permabugs.
In fact - the flight to safety was a path directly to the
US Dollar and Treasuries.
-- whodathunkit?
Now, the wealth created by reckless speculation and
excess leverage via the Yen-Carry is being transfered
from the pockets of hedge funds and speculators...to
the pockets of smart, old-money...those loaded with cash
to buy the forced selling from the yen-carry unwind.
ie: Hank Greenberg, Eli Broad, Eddie Lampert, Warren Buffet,
Carl Ichan, Blackstone...and Goldman et al.
Do you think Eddie Lampert, or Warren Buffet are worrying
if they got the exact tick bottom on BOA, or C here?
Think it was an accident that these Private Equity firms
rushed to go public...and raised HUGE AMOUNTS OF CASH!?!?!
No.
They are licking their chops and averaging in, gapping
their buys... buying solid longterm value at
discrepancies between price and risk.
If you were short the slime, standing ready for this
collapse of the Yen-carry...and are snapping up gems
washed out along with the bathwater... you will do
very well.
But, if you jumped backed on the HUI/gold stock
bandwagon, you got another brutal shakeout from 360-370
back to the bottom of the trading band again.
I said 90% of gold bugs would trade this wrong...
and they did.
-- whodathunkit?
Short the slime... buy the prime.
It really is as simple as that.
What the Yen giveth... it now taketh.
Now what is Paulson going to do next?
Well after the "good ole boys" have snapped up
the gems and picked the bones of the speculators...
the Fed will cut rates and reinflate the economy for
the run into the 2008 Election and those "gems" they
are buying here will fly...
Then comes the prize:
"Privatization of the U.S. Social Security System"
How much money would that pump into the market?
Think China might find that as an attractive
diversification out of Dollars?
Mo later,
SOTB |
