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

To: UncleBigs who wrote (70933)	10/4/2006 11:03:39 AM
From: Mike Johnston	Read Replies (1) \| Respond to of 110194

"It's gaining purchasing power versus precious metals, oil and virtually all other commodities." I believe this short term gain in purchasing power is temporary. It is a function of multiple bearish hedge funds being liquidated and Goldman Sachs cleaning up. Just as the nasdaq collapse began only after virtually all bears were wiped out, maybe the real move in the dollar and the metals will come after the dollar bears are wiped out. No question that any hedge fund with a anti-economy trade that is short stocks, short bonds, short financials and long gold and oil is suffering horrific losses and depending on the amount of leverage employed those could be "amaranth-like" losses. I want to see a GS earning report after all this, it would not surprise me that a true amount of money made by them will be smoothed out over the next few quarters, but it would not surprise me if GS was making more money than XOM right now.