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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (4747)	12/2/2001 12:20:13 AM
From: isopatch	Read Replies (1) \| Respond to of 36161

Important stuff Kastel. Thx. ENE from falling safe to >>> "Daisy Cutter". Blast wave damage reports will be coming in for weeks maybe months!! We haven't even begun to see the market mayhem from the collateral damage. Several statements struck me in Lieb's commentary struck me. <Enron was easily one of the largest derivatives traders in the world in energy, FX, and interest rates> We already knew they were huge in NG, electricity and oil. Then Frank posted the heads up on London Metal Exchange shutdown due to large Enron copper positions! And now we have to add in FX and Interest Rates derivitives?! Holy Dino Droppings Sherlock!! This is so far beyond the scale of LTCM? We might actually be talking several orders of magnitude. And apparently I'm not the only one who thinks so. Again, from Lieb: <I spoke with two savvy hedge fund managers in New York City today, and both were concerned that the Enron situation could dwarf the problems caused by Long Term Capital Management.> Let me fill in a few thoughts on what I'm seeing that lead me to such a conclusion. Besides the fact that Enron has a vastly larger global trading operation than LTCM..... Everyone should remember that LTCM was basically a bond boondoggle, particularly intricate and convoluted Treasury based constructs. That's the Feds home field folks. The trading desk at the Fed Reserve Bank of New York can do humongous quantities of Treasury paper every day. That's their niche. They know it backwards and forwards. So LTCM's problems couldn't have been on more familiar turf for massive wheeling and dealing intervention PLUS key off board deal making with major W.S. houses. But, we now see the Enron saga will play out on perhaps a dozen different playing fields at the same time!!! And, except for dollar and gold manipulations the gov & Fed aren't experienced in the other markets that are all beginning to come under pressure at once. This is Sliders proverbial "too many holes in the dike" scenario staring us right in the face IMO. And if Argentina nukes now on top of it?! Say Goodnight, Gracie. We could see a global meltdown that would make 1998 look like the Mister Rogers Show!!!<lol> Trading halts lasting days or weeks in multiple markets across the globe. Trading house failures, bank failures, corporate failures. Total chaos!! The Dow could drop 1,000++ in one day!!. We got gold and cash. We're the lucky ones. Isopatch.