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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 398.89+0.1%Dec 30 4:00 PM EST

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To: TobagoJack who wrote (64689)7/11/2010 5:04:58 PM
From: TH2 Recommendations  Read Replies (1) of 218863
 
TJ,

This is very interesting. It is going to be tricky for those inside the game to dump everything they've got first. Our criminals are going to have to compete with foreign holders and once the damn breaks the flood is going to be fantastic.

My long term "dream" plan was to ride gold up during the rate reset and then jump into 10's or maybe longer dated at 8% or above. If everyone were to dump at once, which is what must happen, I see no reason why Volker type rates would not result.

The risk with buying the long stuff is the systemic erosion of the clownbuck that must come. The entitlements must be slashed and the Fed perhaps sacrificed to put in a bottom.

This is tricky stuff. Getting 12% on a ten and then having the currency halved over the next two years is a massive loss.

GT
TH
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