RCM Comment: The following explanation, while a little esoteric, offers unparalleled insight into a major component of the credit crisis: Karl Denninger- I buy a CDS on GE (a few weeks ago) for a couple hundred basis points ($200,000 per $10 million)The SELLER of that CDS protects against possibly having to pay by shorting whatever he can against that short […]
RCM Comment: Welcome to the wonderful world of inflation. While on this ride please keep your hands inside the cart at all times. The exhibits below will give you a glimpse into the enormity of the worldwide situation. This ride is speeding up, so please hold on to the bar. You will notice that the bar I am referring to […]
Comments by Gary Rosenthal: It has come to our attention that a piece of legislation traveling through Congress contains a little known section that would retroactively render naked Credit Default Swaps(CDS) unenforceable. In other words, with the stroke of a pen Congress would make contracts previously entered into by two willing parties unenforceable. On what legal grounds can Congress do […]
I have been asked the same question repeatedly over the last few weeks. In fact, what began as a seemingly innocuous trickle has turned into a deluge of disillusionment and despair. So often now have I fielded this question that the time has come to dissect and reveal its true destructive force on a portfolio. The offending question is often […]
Jim Sinclair: On Geithner… During testimony on his nomination, when Secretary of the Treasury Geithner was asked about errors made in the Great Depression, he replied: There were two:1. Monetary stimulation ended too soon.2. Heed was not taken of the dollar foreign exchange position. Think hard on the implications of both these points. The dollar rose into the Great Depression, […]
RCM Comment: As I write this note the equity markets are down over 3% across the board with financials leading the way. At the same time, Gold and Silver prices are called higher by over 3%. Those of you who are part of the Fortune’s Favor Family of Funds, follow this blog, or are members of our website know that […]
NEW YORK (Reuters) – Stocks extended gains on Thursday as shares of financial services companies sharply cut losses on talk that Washington’s rescue plan for banks may include suspension of a key accounting rule mark-to-market accounting, traders said. (RCM Comment: For the record, we believe the mark-to-market issue is complete and utter nonsense and will be disastrous if passed. It […]
RCM Comment: A real battle is brewing in the U.S. equity markets. The proverbial line in the sand has been drawn and the fight is on between bulls and bears. All three major U.S. indices are trading around key psychological support areas: Dow30 8,000, S&P500 800, NASD Comp. 1,500. What hangs in the balance? A move down that takes out […]
