$40B drain on Monday between Treasury & Fed? Did I read that right?

Thursday and today were something.  Talk about chickens coming home to roost.  Margin calls for big boy hedge funds, FCB's pulling a few $B's out of their holdings of our waste paper (as per Doc's Pro Edition today), our abandoned child Bucky getting a little love at a time the Yen is approaching a triple top.  Money is getting scarce.  The banks don't have enough to lend 'cause they're insolvent, having written down $200 Billion in recent months, and most think that is just the tip of their iceberg of losses.  Bond insurers holding onto their credit ratings by their fingernails and when it falls, the rating on hundreds of Billions of Muni's will fall with it.

The 13 week T-Bill is at 1.4% yield today.  Fed Fun rate is 3%.  That gives the Fed 160 bp's of ammo and traders are betting 98% we get a 75bp cut this month.  WTF Ben, just shoot it all this months, a full 1.5% cut, as per your front loading theory and then just rename Washington Little Tokyo and be done with it.Bucky may be more in demand for a bit.  I'm looking at a target between 74.25 and 75.25.

Slipping Out Of Control

    Author: Jim Sinclair

Dear Extended Family,

First I told you “This Is It!” and clearly this is, in fact, it.

I have demonstrated to you that there is no practical solution to this gathering of problems caused by unbridled greed and the lack of regulation to facilitate it.

Now I am telling you that it is “Slipping Out Of Control”

Attempts to use tools that have no practical power to cure the problem are pushing the problem over the hill.

In the Weimar Republic the great plan to depreciate the currency in order to depreciate war reparations written in it was to let it “get out of control.” The currency began a march to zero and gold therefore went to infinity in terms of that currency.

I do not expect such a situation percentage wise. I pray the situation that is now “Slipping Out Of Control” does not go to such ends. The Weimar case study however is a duplicate of today’s conditions.

All you need to do is replace the words “war reparations” from the Weimar case study with “over the counter derivative meltdown in credit and default derivatives” and you have a similar situation in economic history to which you can compare today.

Gold is going to a minimum of $1650.

Every category of gold shares will participate, with many substantially outperforming gold as shorts are forced to cover.

“This is it” and it is “Slipping Out Of Control.”

Eliminate as many intermediaries between you and your assets. Own the Swiss and Cando treasury instruments. Have at least 1/3 of your liquid net assets in gold and precious metals shares. For some it will be more.

Under no circumstances use margin.

Hard assets are about to make their entrance onto the stage of the establishment equity investors.

Before you go opt for a gold ETF read the original prospectus thoroughly.

Do not try and save the world. The world will think you are crazy and get annoyed. You can only protect yourselves. The saddest thing is Joe Six Pack is LOST, sacrificed on the sick altar of greed.

Regards,
Jim

http://www.jsmineset.com/

The frustrating part of this is where do you put your money to work. I have over $30k sitting in my and my husband's iras that I have no idea what to do with. I don't "trade" these accounts, but I can find no solid ideas right now. Have a few canroys and some pms already, other than that I just have no idea what to do with it. Sad, actually.

as a bear I have been expecting armageddon in OZ for quite some time.


Here is the story.
ABC Learning Centres Ltd founder Eddie Groves has been forced to sell almost his entire stake in the company after facing more margins calls.

Mr Groves sold off more than 12 million shares on Thursday at $2.14 apiece - leaving him with only 3,186 ordinary shares in the company he built up from a single childcare centre in Brisbane 20 years ago.

After topping the annual Business Review Weekly Young Rich List with a personal fortune of $260 million two year ago, Mr Groves now owns a $4,683.42 stake in ABC.

http://news.theage.com.au/abc-learning-fou...80307-1xvg.html

LOL when I saw it was $hittybank doing the margin call.

Shortys latest blog is up! Friggin hilarious!

Something almost as funny! Peter Schiff and Art Laffer from CNBS in 2006!
http://www.youtube.com/watch?v=LfascZSTU4o

After his perfect assessment of the situation,  the info babe got mad when she misunderstood the point.  They should give all tangelo's moolah to that Schiff dude.

The frustrating part of this is where do you put your money to work. I have over $30k sitting in my and my husband's iras that I have no idea what to do with. I don't "trade" these accounts, but I can find no solid ideas right now. Have a few canroys and some pms already, other than that I just have no idea what to do with it. Sad, actually.

He he he...I remember that exchange Brick. Check out the quotes at the top of the screen. SPX 1301, DOW 11300, Nascrap 2150. Gold 620, oil 70. 

I have a similar problem.  200 large in a 401K.  This is not advice but maybe there wll be some critical advice. 

33 % Short term Treasuries
31 % Short Term Investment grade Corp
17 % Capital preservation
10 % Euro Pacific MidCap stock
7  % S n P
2  % Midcap value

Equities are recent and still near basis.  Goal Is Buffett's rule number 1.

even some of the strongest sectors are now beginning to show signs of an intermediate top today

fugly

even some of the strongest sectors are now beginning to show signs of an intermediate top today

fugly

Check the return on New Zealand and Australian dollars paid out on Interactive Brokers.  Last time I looked, they were paying north of 8% on cash balances denominated in those 2 currencies.

It's interesting to note that Peter just wrote an article today titled "They still don't get it" on his homepage

http://www.europac.net/ or found at financialsense.com  http://www.financialsense.com/fsu/editoria.../2008/0307.html

where do I find shortys blog?

TIA

Thursday and today were something.  Talk about chickens coming home to roost.  Margin calls for big boy hedge funds, FCB's pulling a few $B's out of their holdings of our waste paper (as per Doc's Pro Edition today), our abandoned child Bucky getting a little love at a time the Yen is approaching a triple top.  Money is getting scarce.  The banks don't have enough to lend 'cause they're insolvent, having written down $200 Billion in recent months, and most think that is just the tip of their iceberg of losses.  Bond insurers holding onto their credit ratings by their fingernails and when it falls, the rating on hundreds of Billions of Muni's will fall with it.

The 13 week T-Bill is at 1.4% yield today.  Fed Fun rate is 3%.  That gives the Fed 160 bp's of ammo and traders are betting 98% we get a 75bp cut this month.  WTF Ben, just shoot it all this months, a full 1.5% cut, as per your front loading theory and then just rename Washington Little Tokyo and be done with it.

Bucky may be more in demand for a bit.  I'm looking at a target between 74.25 and 75.25.

Severe margin calls somewhere. Most likely it's just Carlyle

http://calculatedrisk.blogspot.com/2008/03...or-carlyle.html

Ugh! I hate thinking about my 401K. Can't wait to change jobs and get out.

I got no choices in a crappy Oppenheimer 401k. Kicking myself for contributing. That balance is down 35% compared to my trading account. For a while I took an opposing position in my trading account, but that turned out to be a loser move. Now I can only wait for the next opportunity to change my contribution. To 0.