Is the credit crisis solved as the mainstream media suggests?
*JSMineSet, by Jim Sinclair, April 14, 2008:
"It strikes me as almost criminal that last week going into the
weekend newspaper articles declared the credit problem solved. They
based this statement off the 'evidence' that the borrowing at the Fed
Begging Bowl loan window had declined.
Logically that is the weakest argument possible and is akin to saying a gambler lost less money last week so he certainly is on the way to becoming a winner. It is a story about the weather from a weatherman who refuses to ever look out the window.
How many investors have made decisions based on this misinformation?
How many regular people continue to dig their own credit graves because they are told that all is well and is only getting better? This is where the crime is committed against a public who really cannot defend themselves.
Maybe being silent would be an ethical route to take in order to not disturb the social order created by spin's plausible denial.
But then along comes Wachovia Bank fessing up to their new mark to model cartoon values of items that have no market and therefore no worth. The Fed has a new client at the Begging Bowl loan window and potentially a nice public financing deal to take part in.
You have not heard about 90% of the private and non-financial public entities holding this junk from money market funds to the old and enfeebled lighthouse employee’s retirement fund. I do not think OTC derivatives missed a town, state, widow, orphans or retirement fund.
There is so much more to come both in OTC derivative disaster real values as well as the failure of other arenas of derivative financing such as auto loans and leases.
The tip of the iceberg is credit, then credit default OTC derivatives, but that is only a miniscule part of the ocean of market to model icebergs.
Goldman Sach today said that US corporate earning are and are going to continue to be PUTRID.
How does Goldman's 'Earning Stink and will Stink' speak to Municipal, State and Federal income as the cost of everything rises? How does Goldman's statement speak to the US Federal Budget Deficit? You have not heard a peep on that subject from the Talking Heads.
It will be a miracle if the dollar holds at USDX .5200 or if gold ONLY goes to $1650."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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