David, <<knew absolutely, without shred of a doubt, that liquidity was leaving the system and would continue to do so, although the velocity and acceleration were unknown and it could take awhile before a hiss became a roar.
Against this backdrop, you can place one bet. One huge bet, to capitalize on liquidity leaving the system>>
Should this be the case, I would short the entire home/mortgage/sub-prime complex, and with your permission, I would also short gold, since it is useless in a world without liquidity.
Insurance companies, with their rich capital and still faraway longtail obligations, may enjoy a ride in the high interest world.
Electronics and retailers, they will live.
Financial sector is one and the same with the housing sector, and so we know what to do with them.
I think, and am counting on.
On GM and Ford, I think they are the leading indicators for the slaughter that will be housing, as their cars are housed in garages, and the profit are funded by housing.
Chugs, Jay |
