So it was written - so it shall be done...
The question was...
Given the massive global liquidity pump, fiat presses
running 24x7, the dollar at near all time lows, exploding
US deficits, increasing geopolitical risk, and obvious
ramping inflation... why have gold stocks so vastly
underperformed the broad market for the last year?
The answer...
Message 23512782
To: SliderOnTheBlack who wrote (5094) 5/2/2007 11:01:10 PM
From: SliderOnTheBlack 14 Recommendations
Gold & Yen Carry Trade...
Message 23562282
From: SliderOnTheBlack 5/22/2007 5:39:08 AM
2 Recommendations Read Replies (2) of 5702
The two keys looking forward are the Yen carry and derivatives...
Message 23608554
From: SliderOnTheBlack 6/8/2007 8:05:24 AM
9 Recommendations Read Replies (3) of 5702
"Where are all the bagholders?
Oh @#$%! - we're the bag holders!"
Message 23733891
From: SliderOnTheBlack 7/26/2007 6:00:24 AM
7 Recommendations Read Replies (4) of 5702
Yen carry unwind & derivatives meltdown.
Bear got pay back.
They got to hold their own bag.
And they won't be the only one, or the last one...
Another Bear Stearns fund meltdown, Macquarrie Bank blow up in Australia...
the Aussie market down - 3.3%, South Korea down -4%, China down -3.8%
and Gold down $6 bucks.
...whodathunkit?
SOTB
PS: This latest fund of Bear Stearns was not levered
and was not in subprime!
All the models, all the valuations, all the assumptions...
and all those financially engineered earnings are now being
exposed as smoke & mirrors.
How much of the run post "911" was financially engineered?
It's not about housing, it's not about subprime, it's not
about inflation, or oil.
It's about derivatives.
Wall St. is scrambling to plug the dikes.
Both the 2008 Elections and the greatest windfall in the
history of the markets and investment banking are now in
jepordy.
And it all started with Barrons asking:
"Where's The Little Guy?"
...and now you know why they were asking.
But...this is only half the story. The most important half is yet to come...
ciao~ |
