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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 389.75+0.5%4:00 PM EST

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To: TobagoJack who wrote (40044)9/18/2008 10:35:22 AM
From: elmatador1 Recommendation  Read Replies (3) of 218125
 
TJ, banks will sweep everything under the carpet and pass it to the FED. To avoid this wayo, the FED let them go right to the edge of the abyss, so that they cough up everything before FED steps in.

That's why the FED and the Central Bankers can't act proactively. If they did so, they will get all other non-related losses (bundled with all the sub-prime poison).

Slowly, when it becomes clear that the banks and institutions are going to go belly up, FED and Central bankers step in. They do so because by then it becomes clear that the crying is not wolf, it is the real thing.

Always look to the facts as someone trying to play wayo. When you have a insider -like Paulson- in the government, is exactly to act based on a knowlegeable guy who knows how to recognize wayo since he has played it.

The important thing is, the collapse is localized and is going to be dealt with subreptiously (even www.dictionary.com doesn~t have this word).

But FED is acting subreptiously.

The US is not Brazil. When Brazil was in a crisis, the taps were colsed ruthlessly. Interest rates increased com gusto. Then we were left to die in the shadow. After a while, for good measure, we were dragged to die in the sun.

Now let me see everyone coughing up the money... It is there. It is just a matter of time for it to come out.
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