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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 451.89+1.9%4:00 PM EST

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SirWalterRalegh
To: carranza2 who wrote (192461)10/9/2022 8:45:52 PM
From: TobagoJack1 Recommendation   of 219612
 
Re <<Makes me feel optimistic, an unnatural state for me.
My intermittent fasting and other self-imposed limits are gone with the wind. Lots of work to do upon return.
>>

Plenty of time to diet when we get much older

Re optimistic, I too am optimistic, so let me impart some extra optimism to you.

ask-socrates.com

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We are facing a Sovereign Debt Crisis and the mismanagement of the ECB in moving interest rates to negative in 2014 is now coming back to haunt Europe. All our models have been projecting this Waterfall Event in sovereign debt. Even the risk models on Germany’s government debt market used by hedgers exploded last week to levels that are even higher than recorded risk level of the 2008 financial crisis.



This coming week looks to be highly volatile. Margin calls last week forced the liquidation of derivatives positions held by most banks, insurance companies, and pension funds. Those who have been totally blindsided by the rise in interest rates following the standard fundamental analysis that is just opinion. The derivatives that have been used to protect their portfolios against falling interest rates have come back to bite them really hard. There are serious losses now in Europe as the fundamental hedges have blown up in the face.

We simply have a crop of the worst possible leaders in charge of western economies. The financial markets led by the fundamentalists never saw this coming whereby the spread between German Bunds and interest rate swaps exceeded the record highs of 2008.



The euro derivatives market has virtually collapsed following the waterfall in the British gilt market. The Bank of England jumped in to buy up 50 billion pounds of bonds trying to save the market. We have a Panic Cycle in Britain this week and the fiscal mismanagement of government in the West is beyond belief,



This proxy war against Russia is breaking the banks of the West. The US dumped in $150 billion for weapons support and then an additional $50 billion every month just to keep Ukraine afloat. They may think that they can conquer Russia, but in the process, they are undermining the entire Western economy between shortages, sanctions, and reckless spending handing Ukraine insane amounts of money without any accountability.

So be mindful of this coming week. We have been in a serious Waterfall event that is no joke.
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