LGX Oil + Gas Inc ROAOF

RE: Theories on oil up, shares down?.

[TO1]

“World economy will slow down before it picks up again” Please. Everyone is watching way too much TV these days. To say that the US mortgage sector will spill over into other financials is way overblown. Barclays writes off $2.7 billion. They manage over $1 Trillion in assets. Everyone talks about the losses, but no one puts it in context to the size of the companies that hold that debt. Citibank has the largest exposure out there now at $44 billion, after an $11 Billion write-down. They also manage $3.4 Trillion in assets. The media is slowly brainwashing everyone into this subprime crap b/c they constantly play this message over-and-over again non-stop. Now when everyone hears subprime they want to sell b/c they equate that word with financial pain on the markets. It’s pure physiological. Today everyones talking like their a mortgage broker when 2 months ago they didn’t have a clue as to what sub-prime was. Right now China is far more important to world growth than the US. The US has 3 times the size but 1/6 the growth of China’s economy. So China is 2x more important to world growth. That growth is not going to slow down as it is primarily from the government extending infrastructure in China and the Chinese government is 80% of the Chinese economy through their state controlled companies. They have $1.45 trillion in reserves so if they want to throw out more construction contracts then they really are immune to what happens elsewhere b/c they already have all the cash they need and they dictate their level of growth. The real monster in the background that everyone, with hard assets to paper assets, should really be worried over is the Yen carry trade. Sub-prime is a dwaf compared to the Yen carry-trade. Tens of Trillions (Carry trade) vs Billions (Sub-prime) that effect every asset class all over the world. It’s the Bank of Japan that can stop the entire world economy, b/c everyone owes them huge money. If their interest rates go up drastically then the Yen carry-trade goes into full effect. People aren’t even looking at the real danger to the world. It’s all Smoke and Mirrors on TV! You can write of mortgage losses but you can't write off the carry trade.