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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John McCarthy who wrote (63290)	6/10/2006 2:01:28 PM
From: mishedlo	Read Replies (1) \| Respond to of 110194

Cheerleader Panic, the HPI, and the Battle of New Orleans globaleconomicanalysis.blogspot.com Mish

To: John McCarthy who wrote (63290)	6/10/2006 2:07:36 PM
From: mishedlo	Read Replies (2) \| Respond to of 110194

This statement confuses me. <<<<<<<<<<<<<<<<<<< The BIG MISTAKE people make is thinking commercial shorts will "have to cover". That is bullshit. <<<<<<<<<<<<<<<<<<< I better start with: Who are commercial shorts? The commercial shorts are NEM, Goldcorp, Barrick, etc etc etc. There are reasons they might cover shorts (or stop selling so far out into the future) but there is little that wold FORCE them to cover those shorts (unless they sold more gold than they can produce) and I do not think that happened. Think again of corn. Are farmers going ever going to be forced to buy corn? Only if they sold more corn than they had. There are commercials that will always be short (producers) There are also commercials that will always be long (e.g. jewerly makers & Kelloggs) Most of the other open interest is speculation. Mish