Reichers - re: Where the Cash is?
As reported by Bloomberg and as just mentioned
on CNBC's "Fast Money"...
US Treasuries had their biggest move since the crash
of 1987. The 3 month T-Bill has collapsed by .82 bp.
That's where the cash is.
Safe, sound and secure.
Let me pause here and bring everyone back into reality.
Would you like to step away from all the headlines,
all the media buzz, all the gloom and doom, all the
fear, all the panic and all the hysteria?
Well, here's where to turn...
To Berkshire Hathaway and Warren Buffet.
Berkshire and Buffet own real businesses.
Real, American businesses.
Anytime you want to know the reality of American business
... check this chart:
And here's more food for thought...
Ask yourself why the man who coined the term "derivatives
are weapons of mass destruction" is buying a couple of Banks
who happen to be the largest holders of derivatives among all financials?
I will repeat:
All derivatives are not created equal.
The players know where the toxic waste is buried and
who's holding it.
RANK BANK NAME DERIVATIVES
in $U.S. Billions
(as of 12/31/2006)
1 JPMorgan Chase... 65,347.3
2 Bank Of America... 26,674.4
3 Citibank... 25,403.6
4 Wachovia Bank... 5,491.9
5 HSBC Bank... 4,465.0
6 Bank Of New York... 892.8
7 Wells Fargo Bank... 851.3
And you can add Hank Greenberg, Eli Broad, Eddie Lampert,
Carl Ichan and George Soros to that old, smart money
list that are stepping directly into the abyss...and
buying.
Now, that doesn't mean you go "all in"...and it doesn't
mean that you buy the junk and the slime. What it does
mean, is that you can begin establishing positions and
"trading" into a bottom.
Be smart. Look at local and regional banks that you
are familiar with. Look outside the financials
for sectors and stocks that were sold off as
hedge funds raised cashed to meet redemptions. Look
for sectors like the gold stocks...that took another
deep wave down on the yen-carry unwind.
There's still plenty of junk to short. But, with Bernanke
on the party-line with the CEO's of Investment Banks
tonight... I wouldn't be leaning too heavy on short-side.
Oh, and Reichers... re: "The Cash"
There's a helluva lot of cash sloshing around the globe
and they're printing it every day.
Eurozone M3: up 10%
UK M4: up 13%
India M3: up 20.3%]
China M2: up 17.2%
Australia: up 12.7%
South Korea M3: up 11.3%
New Zealand M3: up 18%
Australia M3: up 13%
Japan M3: up 6%
Russia M2: up 49%
Watch where it moves if the Fed unleashes 2, or 3
quick rate cuts.
SOTB` |
