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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: sciAticA errAticA who wrote (33596)	5/12/2003 3:06:54 PM
From: sciAticA errAticA	Read Replies (1) \| Respond to of 74559

Jim Sinclair: Morning Commentary MineSet May 12, 2003 Seven major international investment banking firms, through bankruptcy-shielded subsidiaries, hold 94% of the estimated $142 trillion of non-regulated derivatives. When in financial difficulty because of their derivative exposure, these banks will, in my view, invoke the main principle of the "Art of the Steal" which teaches that if you are the largest borrower from the bank your loan cannot be called even if it is non-performing without breaking the bank making the call. Therefore, you do not have to service your loan if you are the largest borrower from the bank. Similarly, the major derivative dealers cannot go broke without breaking the world's banking system. Warren Buffet on the other hand said last week that derivatives can bring down the international banking system. The Fed and the Euro Central Banks will have to produce the monetary aggregate liquidity in world economies to sustain the major derivative dealers in order to avoid bank failures of the past. Therefore, dear comrades of the Gold Community "you know who" can't go broke. Gold will therefore trade at $410 to $416 in the very near future. I say this without any doubt in my mind. I say this regardless of the vicissitudes of technical analysis which will set reactions in motion from time to time. I say this with the same confidence that lead to my major purchase of US Treasuries 10 year instruments in 1981 in the mid 50 cents on the dollar after which they went to over 100 cents on the dollar yielding 12 7/8 while you waited for the capital gain. jsmineset.com