Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bill F. who wrote (51866)	3/14/1999 11:26:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 132070

I think there's more to it than that. Call me a conspiracy theiorist, but I thnk there is some collusion going on to hold gold down and stocks up. The evidence is circumstantial at best, but we know it is rumored that LTCM had a large short position in gold as do other hedge funds. They used the funds from these shorts to finance speculation in the stock and bond mkts (gold carry trade)... the bond mkt has already moved against many of these positions. We know that a group of investment banks was formed in order to "manage" LTCM last fall (no pun intended). You cannot "manage" that kind of leverage once the mkt knows about it... all you can do is postpone the unraveling (it helps to have the Fed's printing press too) Collusion and attempts at support are nothing new at mkt tops, but they ALWAYS fail for the mkt is bigger than any few colluders. There were similar attempts to hold up the stock mkt in 1929 when it began to get shaky. Many went to jail afterwards, including the NYSE president. This time will likely be no different. When gold moves up and stocks drop, it wil all hit the fan and will likely be explosive. (the continued unraveling of the yen carry trade also adds some more fun to the grab bag) lots of events converging next week... it should be interesting...