Don, if you talk about macro economic considerations, then I would worry even more about the huge budget deficits developing in Japan, without achieving the desired effect (they are still pushing on a string there). I would also worry about the fact that the Euro was a big mistake at least in timing, since Europe is in, or going into a recession, apparently. I remember only one case when margin problems in the commodities sector caused reverberations in the equity sector (The old Hunts cornering the silver market, and its collapse, they never got called on the carpet for that manipulation, I wonder why? Miliken went to Jail, but Hunt went "scott free"), and that was contained quite well. Actually, some gold bugs will tell you that there is a big short position in commodities (conspirationally), and thus a break in the CRB (lead by Au) would be beneficial to margin holder (VBG).
Zeev |
