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To: John Vosilla who wrote (51513)	10/28/2007 1:40:30 PM
From: heinz44	Respond to of 78419

The Story Of The Week Author: Jim Sinclair Dear CIGAs, Ounce upon a time (last week), there was a Wall Street Icon firm, a household name in every financial home. Its name was so famous that it eclipsed the “Buttonwood Tree.” This firm found a great Golden Hen (over the counter derivatives) that earned them billions of dollars. Then along came the Grinch of Reality, and it was required that this Icon firm properly value the product of their Golden Hen (OTC derivatives) which when no market was found laid a giant rotten egg. You see, there is no market for these special performance contracts named OTC derivatives, nor has there ever been. Therefore they have been revalued, yet not properly valued, as the value is still value-less. The loss was Icon firm shaking. The CEO of this Icon firm knows that there is another mountain of OTC derivatives in the firm that will eclipse the meltdown cost of the discredited credit derivatives. They are called Default Derivatives. He opened talks with a firm made up of Wall Street kids with significant capital, but not an Icon of Old Blue Blood Wall Street. He knows that the next wind that blows will take the Icon firm into a net deficit capital entity, which equals broke. The Board of Directors of the derivative blasted Icon firm was very, very upset that the CEO would open takeover talks with some street kids. They would never approve of these less than blue bloods. You see, the trophy board of directors knows a lot about many things, but less than nothing about OTC derivative as they have been praised for years by a parade of professors and mathematicians as the mother and apple pie of profit centers. The Board of Directors in their self righteous New England religious fever of a group of wronged people fired the CEO, not realizing his attempt was to save at least the name of the Icon firm. The now unemployed CEO knows that in time the Default Derivatives exposure way exceeds the remaining capital of the Icon firm. For all intents and purposes this Icon is busted, but the Blue Blood Trophy Board has no clue. If you tried to explain why there is risk to the blue bloods of the trophy board their eyes would glass over. Some of the older members of the blue blood boards of directors of the Icon firm would not be concerned as they would be asleep before the explanation, only waking up as the Chairman declares the meeting concluded, for that is what old blue bloods do. So the snobs have thrown out a man who never created the problem, probably didn’t understand the risk, and got blamed after the fact. This trophy board of directors is quite satisfied with themselves this weekend. They have no idea they blew it and there is a short fused financial nuclear event about to appear in this Icon firm’s blue blood board of director’s room, because they would never let some street kids take them over, and have thrown out the man who tried to save their bacon. Now if Icons of Wall Street finance can go belly up, what is to say that your bank or broker cannot? Ladies and gentlemen, prepare to defend yourselves!

To: John Vosilla who wrote (51513)	10/28/2007 6:30:13 PM
From: marcos	Read Replies (3) \| Respond to of 78419

To raise rates enough now to have the dollar hold anywhere near its value would mean 'Great Depression 2' for sure, yes ... other fiat systems have their own problems, and will no doubt be open to what is essentially competitive devaluation, this will work fine until, as Timba points out there, it doesn't ... you have to have both sides of the business cycle working for you, i think, it takes the downturn to clean up malinvestment of the bull times ... or, you can just take the easy way out, and periodically move the decimal point on your fiat a few places to the right There are canadians talking about going down there to pick up bargains, in BC people tend to be more interested in California, one fellow and his son plan to go down before long to do again what the father did about fifteen years ago, pick up a rental house in a location that looks like it has a long-term future, he did quite well the last time, sold way before the peak of boom but return on what he put out was great ... only the people i know in Quebec are interested in Florida, and only in certain parts, plus one says to watch out for shoddy construction, but i think he says that about everywhere now, and rightly no doubt, he's an old builder and knows the difference In re real estate here, i don't really follow the overall market, classes of houses in particular areas and all that, but it must be fairly strong or people would be moaning about it ... Vancouver condo prices are famous around here, have been for a long time, so much overseas money looking for them, there has to be an oversupply coming at some point as they're slapping up more way out in the valley, the whole idea is ridiculous to me as they don't come with one square foot of land 786 bid, says kitco ... will the Fed raise, and if so by how much? ... i'll take the middle course, and say a quarter point, which is more than in the broad market already, so a selloff there ... if they don't drop, our gold stocks will[?]