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To: dalroi who wrote (61873)10/23/2008 12:02:21 PM
From: E. Charters  Respond to of 78409
 
Flight to money - makes money scarce for traders who buy gold. Also hedge funds are now required to operate on 35% margin against 15% a while back. This pulls a lot of trade money out of the system and allows for prices to fall.



To: dalroi who wrote (61873)10/23/2008 12:27:50 PM
From: LLCF1 Recommendation  Read Replies (4) | Respond to of 78409
 
Everybody doens't know that apparently... people generally know next to nothing during a panic.

It also will take time for the "US 30's depression mentality" (keep cash in your mattress) thinking to morph into 1920's Germany hyperinflation mentality (get rid of your cash before it's worthless).

I suppose there is no guarantee the former (this moment) actually turns into the latter (couple years?) depending on what the fed and government do... but their intention to by whatever assets necessary to keep things "liquid" certainly points a giant finger to the latter IMHO.

If I were China I'd be taking this opportunity to unload some of these dollars that have come back to life.

DAK