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First Asset Morningstar Emerging Markets Composite T.EXM.A



TSX:EXM.A - Post by User

Post by silvercoinon Aug 17, 2007 1:50pm
286 Views
Post# 13264050

RE: A Silver......Opportunity

RE: A Silver......OpportunityLuv2makemoney your post makes an "interesting read". I agree with you.....Good time to BUY....SILVER & GOLD. I'd like to comment on some "points" you brought up. 1. Lawrence Raulston should stick to what he knows. His comments concerning "the sub prime mortgage" mess is LESS THAN USEFUL and tells me he knows LITTLE about how todays CREDIT and MONEY markets work. ...Im not being "arrogant", but "factual"....let me explain. Why if theres only been a 5% "default" rate on sub prime mortgages, that its started the CURRENT worldwide Finacial Meltdown. The US Federal Reserve,ECB and other Central Banks have INJECTED...HUNDREDS OF BILLIONS OF DOLLARS into this "financial meltdown" to no "avail". This is the REASON....Todays Financial Markets are DIFFERENT. When the US GOVT "deregulated" the financial markets the "financial landscape"changed. Now everybody could sell the same "financial products".This was GOOD increased competition brought LOWER PRICES and weak companies went out of business. Also NEW and EXOTIC financial products were INTRODUCED. However some of these EXOTIC products came with UNKNOWN RISKS(read: hedges & derivatives). These "financial time bombs" were imbedded into the worldwide financial markets...(yen carry trade, govt. bonds, commercial paper, MORTGAGES, money markets, etc.) How? The "construct" of todays FINANCIAL MARKETS looks like and FUNCTIONS like a"giant chain", its LINKS (different markets) are INTERCONNECTED. Therefore, if any LINK is BROKEN, the "integrity and strength" of the CHAIN(read: financial system) is DESTROYED. Thats why we have the current MELTDOWN in Financial Markets. ......As we speak....investors are AFRAID, the "commercial paper" market is DEAD, the use of derivatives and hedges is BURIED in the "dust bin of finance", sub prime mortgages are a GRAVEYARD, the US FED RESERVE had to cut the DISCOUNT RATE, (which is not "good" for the US DOLLAR). ......("not a catastrophic event"....Raulston is "out of touch with REALITY"). No offense...intended. As for Warren Buffett (Berkshire Hathaway) buying $3 billion of "bank stocks", I dont BET AGAINST Mr. "B". My guess is that hes identified some Bank stocks that the US Govt. WILL NOT ALLOW to GO UNDER. Only a guess, but we will find out why LATER. Words of experience....NOW is the TIME to be "brave and courageous", ...buy precious metals and energy (GOLD/SILVER/OIL). HAVE A NICE DAY.....FRIENDS
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