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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 382.95

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Nov 13 4:00 PM EST

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To: carranza2 who wrote (63972)	5/30/2010 6:45:09 AM
From: Haim R. Branisteanu	Read Replies (3) of 217749

C2 - Hugh Hendry is talking his positions that is all. If one will follow thoroughly what Hendry says it is obvious that he IS LEVERAGED AND SHORT GREEK BONDS and possible other PIIGS bonds. My point - Sachs says - let the countries work the difficult situation and reduce their debt. - which by the way every US corporation no matter how dumb the management is get his chance under the sun under Chapter 11 and many companies indeed succeed to get their operation in line and start to be profitable again. Does anyone remember Apple 20 years ago who many predicted the demise of a computer company that does not has WINTEL combination? Surprise, surprise Apple capitalization is bigger than Microsoft More so Hendry claims that if he makes mistakes then HE – Hendry goes bankrupt – OH well dear Mr. Hendry if you bought a bond with cash and you must take a drastic haircut of let say 30% but higher interest rate does it means that you go BK? NO – you only lost as of now 30% of your equity and with time lets say 10 years the compounded interest will cover this haircut – you will not have 150% or 160% of your investment as you anticipated but still around 100% of your money so how can you go BK? Well the secret is that Hendry is LEVERAGED in hope of a drastic haircut and HE WANTS IT NOW!! The more they will drag the rescheduling of the debt the more Hendry will lose money, as he shorted the damn thing at a yield of let say 8% and leveraged it by a factor of 10 – OUCH he must pay out 80% of his investment in interest and God forbid they may recall the bonds and refinance them at face value – Hugh Hendry is toast and now indeed he goes BK – BIG TIME as he will need to add 9 time the discount at which he shorted the bonds – God in heaven do not do this to Hug Hendry he is such a chat able guy He has the audience ears as he is sounding as an expert and knows what he is doing and bashing the PIIGS those days is very fashionable. Even that I am very critical of his outburst and failure to disclose his position the guy does has good investment instincts but he is not always right and likes to speak in hyperboles and scare tactics - like some one else that was on SI and his name is Heinz and now has his own blog In summary the 900 pound gorilla is not Greece or Portugal or even SPain - it is the USA with this administration that with its likeness of WS banks and reckless spending and market manipulation is bringing the world financial system to its knees. How many times over Greece debt can be covered with 1.6 trillion of the US budgetary gap? - now try this with compounded interest over 5, 7, 10 years

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