|
Market timing for huge gains using Mass Psychology
Revolutionary Technique uses Mass Psychology to identify turning points in the markets.locate hot stocks and option plays never ever be on the wrong side of the mkt
Wow, Marge, read this sample of articles from a GREAT new E-newsletter and website." Homer said on last weeks The Simpsons. We cant afford to miss reading Tactical Investor every week. It has Market Updates and timing, Stock Picks, Currency recommendations, Economic Analysis and access to a winning OEX options service. We could get rich and send the kids to Harvard. Better still, we could send them to the moon!"
"The insightful and hilarious Musings from Sol are actually Making Me Think. His recent trades have a 90% SUCCESS RATE, and temporarily, we can get all of this FREE!"
If you missed Homers wise recommendation last week, go to http://www.tacticalinvestor.com for an Eye Opening and mind-expanding experience.
As a bonus, the site includes great commentary and recommendations on Gold from one of the financial worlds best Gold experts, JIM SINCLAIR.
THE ECONOMY
Date: November 16, 2002 11:06 AM
Subject: In Reality, Big Banks Dont Go Bust -- Or Do They?
In reality, big banks don't go bust. What many of you have not looked at carefully, is that JPM and other big banks make those derivative plays through subsidiary divisions. Though that company is a part of them, it is done in such a way that they do not have to assume responsibility. So if those derivatives go against JPM, its subsidiary takes the hit and is liable, not JPM. They will simply collapse the subsidiary or the Government will come in and attempts to bail them out. So forget about waiting for those big banks to go bust. They have been at this milking game for a long time and have connections in high places.
What it is going to happen, though, if enough of the subsidiaries go bust? There is going to be a serious shock to the whole system, which could lead to its demise and collapse, The total derivative play is around $72 trillion, of which Gold shorts or derivatives account for approx. $300 billion, a drop in an ocean. But just one derivative crash could trigger off another, and that's the problem,
In addition, this ½ point rate cut was a not a smart move. It has made holding money in the US less attractive compared to Europe, and we are already seeing a flight of capital. Not huge, but slow and systematic withdrawal and very little infusion of new capital.
We need in the tune of $1½ billion a day to take care of our deficits. So gold will have it hey day sooner than later. After the interest rate cut the dollar dropped. The dollar is already in a slow protracted bear market, the question is how low is it going to go on, not can it go any lower.
CURRENCY PLAY: As a hedge, I suggest investing in the New Zealand dollar and the Aussie dollar, and very soon if conditions are right, the Canadian dollar.
One currency that most people have not considered is the South African Rand, which is a full resource based economy and has the largest reserves of gold, platinum, diamonds, etc in the world. It has already moved nicely from a low of 14 Rands to 1 dollar to 10 Rands to one dollar.
The disturbing trend is that this derivative collapse or implosion is for the first time a imminent reality, as before it was just something to worry about. Now it's a question of how soon is it going to occur, since we have systematic problems occurring simultaneously across the world.
Japan has huge problems, and China has problems too. Brazil is a time bomb ticking, and the US is the like a nuclear bomb waiting to go off. The end result wont be good. Yes, gold will go up, but the pain that will be felt might make you wonder is it worth the price of Gold skyrocketing. As always, time will tell. Time is the only teacher that kills even its most favorite students without fail."
Sol Musing: History does nothing for us imbeciles but come back and whack us on the head again and again. Do the world a favor. If you have kids, make sure you lead them down the right path. Get them to read at a young age, especially books of historical importance. If we can do nothing about our present leaders, we can at least attempt to make sure there are fewer idiots when the next ones are selected.
|