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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (12122)	12/3/2006 7:36:03 PM
From: gumnam	Read Replies (2) \| Respond to of 217837

the citadel number is not very alarming - It represents mostly the cost of financing the 12 times leverage i.e. if you are borrowing an average of 100 bn $ today to leverage your book- you will incur atleast 5.25 bn in just basic financing. What I find interesting is that these guys are upto 12 times stated leverage. The fund of funds investing in them run a conservative 5:1 leverage. The banks providing them the levergae run around 25:1 leverage on their own. So the system is working on a very reasonable 25X5X12 = 1500:1 leverage. Ofcourse maybe it is conservative and has only 1000X1 leverage. Investment conclusion - Let me go and buy my gold for the day. It still seems available in US Gumnam