hello hm, belated report, just got back to freedom hong kong.
From: J
Sent: Fri, August 5, 2011 9:18:21 PM
Subject: Re: Comments - Week of July 25 - plunge n gulp
The tea party revelers of USA n the fiscal misers of Europe are making fiat money inflation by central banks more urgent and more justifiable than ever, intention or not.
I am very rarely fully invested, and I am more and shall be fully invested, assuming lumps of useless metal are investment assets as opposed to mere tradition and assuredly not cash.
I was thinking about taking trading profit from my gains one day before the crashette, but, unfortunately my greed overcame my fear even though I had and still figures that the tee-ing up of qe3 require the political backing that can only arise as n when there is a bad economic hiccup or worse financial cardiac arrest.
As would a captain whose ship had bumped into something, we first do, then decide what to do, and then we tally damage report to ascertain what we may have done wrong.
We bought last bloody night in ny time and we bought this bloody morning in hk time. The usual suspects, nly, gdx, mcd, paas, gold, and the losing pt trade, along with shares of hkex (0388). We like PT whenever it is close in price to AU, whatever the pricing, as in now.
We are even considering making an offer for the just tee-ed up apartment that is downstairs from one already owned at stanley beach road ... maybe the landlord has a margin call (doubt it). Surely AAA rated hong kong real estate, yielding more than AAA USA government debt, is now more worthy than ever, especially to rmb-enhanced country cousins of the north with nowhere to wager.
We decide to plough on and sail through. We decide so because we are sure that our machas read has been enhanced by the doings of and goings on at the tea party nation that is one of the two epicenters of the coming perfect storms.
The perfect storm, by our read, shall be the swirling of hyper monetary inflation with diaper economic deflation, exploding everything sheeple need and imploding all that sheeple have.
The fiscal austerity in hapless Europe and the tea party yammering in clueless empire, along with the opening shot in the new battle of the currencies japan that has been pressed into service by the weight of Beijing currency n naval actions all, in our view, make it ever more an imperative for the bernanke to "do something, do anything, and more than like do that which only he can do and are tasked to do, qe3 through qe-n, ad infinitum, ad nauseam, ad just one last shot, til kingdom comes, til the damage is permanently gummed up n hardened in, and the spin machinery spins no more.
In other words, the tea party n their ilk has made it more necessary for the fed to print, print more, without the benefit of more nominal and fake growth. We are heading into TwoAPuc (the worst of all possible unintended consequences).
The tea party revelers shall have but not care for what they wished, lowered fiscal spend, lowered employment by make-work, lowered tax in-take at higher rates (automatic phase-out of temporary bush cuts), crushed debt even if not federal debt, as the cities n states burn, n private debtors scream.
Unless n until the tea party overthrows the fed by revolution, the revelers just guaranteed more monetary inflation with less fake growth to offset same. The devolution has just been accelerated and the final ante upped, so that most shall fall and a few tea party folks would rise, until taken down by the fallen.
We were down 0.7% since 24 hours ago and now we are up to at least even since before lunch, and we hear the whopping of qe3 helicopter blades in the distance.
Am stance-d per below:
2% paper cash (84/16 hkd vs cad)
36% paper n physical metal cash (56/30/14 AU/PT/AG, 38/62 physical/paper)
24% equity (21/27/41/10 mining/energy/other/Pe)
39% HK rentals
the taking on of any additional risk would necessarily involve leverage.
Let us pray before we prey, and get on with the unpleasant wet tasks.
Amen.
From: W
Sent: Fri, August 5, 2011 12:53:16 PM
Subject: RE: Comments - Week of July 25
Found a credible explanation from credit Suisse re charging fees to depositors:
It is likely this most recent spike was the straw that broke the camel’s back of the large
custodian bank. We also cautioned in our May 6 weekly that should Treasury bill yields
remain compressed for a long enough period of time, the banks would seek to pass
through to investors their FDIC fees. Although at first glance it appears attractive to
receive non-interest bearing deposits that can fund excess reserve balances yielding 25
basis points, FDIC fees reduce the effective spread. In addition, capital charges and
leverage ratio constraints require more efficient uses of balance sheets. In addition, banks
know they cannot rely on these deposits to fund longer-term assets that would offer more
attractive spread, because the funds could leave as quickly as they arrived. For that
reason, the fees announced today will target deposits above those held during a control
month, in an attempt to target this “fast money.”
From: S
Sent: Thursday, August 04, 2011 1:50 PM
Subject: Re: Comments - Week of July 25
I prefer to look at the bright side -- having to pay a fee to hold cash just helps level the playing field vis-a-vis having to pay storage fees to hold gold
Ergo, another oft-quoted criticism of owning gold bites the dust
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