RE: good timingPosted On: Friday, August 10, 2007, 11:56:00 AM EST
Market Rescue Will Hurt Dollar
Author: Jim Sinclair
Dear CIGAs,
Believe me, I know what I am talking about when it comes to markets
Everything required will be done to save the world's equity markets.
Liquidity will be supplied without limit.
The US Fed is buying what basically has no market and are therefore worthless mortgage bonds.
This is not only a crisis in collaterized bonds but infinitely more so in credit derivatives.
The size of the credit derivative market is beyond your wildest imagination.
The unlimited liquidity being supplied in Euro Land and the so far admitted billions in the US by the Fed would never have occurred unless there are major financial entities in trouble. Those big boys that were the major entities in credit and bankruptcy guarantee of derivatives are falling like stones. This is a rescue of the good old boys at any cost to the US dollar.
Gold derivatives are not insulated by some magic buffer. If the entities who have granted these and who have immense profits are threatened with their own bankruptcy, they will find a way to take that profit which is in the billions.
The combination of all this is that the US dollar will go to .7200. Gold will go to and through all the angels.
The problem was initiated by the major supplying of liquidity in 2002-2003 and you cannot cure the problem by adding infinitely more liquidity.
You should now be in Canadian Dollars, Swiss Francs, PM and base metal shares in my opinion.