John Hathaway - The Golden Pyramid & Charles Peabody "Bank One Corp..."
John Hathaway - The Golden Pyramid
Date: 8/25/99 10:57:37 AM EST
From: LePatron@LeMetropoleCafe.com
John Hathaway, Senior Portfolio Manager of the
Toqueville Fund, has served commentary at the
Dos Passos Table entitled, "The Golden Pyramid."
Without a doubt this is one of the finest pieces on the
gold market that I have ever seen. It says it all!
"Anatomy of a Bear Trap - part 1"
"The Coming Melt Up"
"The Great Gold Fire Sale"
"The gold derivatives pyramid is a vigorous free
market creature. It cannot be put down with a simple
declaration that the paper is no longer redeemable
in gold, as governments did with currency. It is a
short selling scheme that has become a trap from
which few short sellers will escape. Paper claims
in the form of derivatives far exceed the underlying
physical metal on which they are based. The trust,
which balances this new pyramid, is based on false
assumptions and lack of information. Paper gold
claims have proliferated at a pace rivaling any
government printing press. A surfeit of paper gold
has driven down the price of the physical on which
it is based."
Charles Peabody is on fire! As this email goes out,
Bank One is down 13 points. The Bank Index is down
44 points or 5%.
Charles alerted the Cafe to Bank One's credit card
problems and has predicted a banking crash of sorts.
While the Dow has soared to new highs, the bank stocks
have lagged far behind.
A 5% move down in the bank stocks is not an insignificant
event. Many of the commentators in the Cafe have spoken
out over and over about coming credit problems. It would
appear it is only a matter of time now before
deteriorating credit market conditions have a profound
negative impact on the U.S. stock market and a profound
positive impact on the price of gold.
====================================================
Charles Peabody has served commentary at the
Hemingway Table entitled, "Bank One Corp. - The First Shoe Drops."
"As ironies go, Bank One's earnings shortfall
announcement tonight is a good one. You see, earlier
this month a number of Wall St. bank analysts were
speculating that, because of First Union's
(FTU-$45-SELL) earlier earnings disappointments, it
would have to sell out. The hot and heavy rumors had
the acquisition-savvy Bank One waiting in the wings,
ready to pounce. Of course, these same analysts
failed to recognize the deteriorating quality of ONE's
reported EPS, the constant changes in accounting
practices, the nickel-and-diming of future estimates
that took place every quarter, or the fact that 1999
EPS estimates of $3.92 a share (i.e., prior to this
latest announcement) were already some 7% below the
$4.23 a share number that the company had endorsed
for 1999 when it announced its merger with First
Chicago NBD on April 13, 1998."
lemetropolecafe.com
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