Posted on 08/04/2011 9:59:33 AM PDT by jdsteel
$16 Billion of 30 year notes being auctioned on the 11th. By total coincidence I think the realization that we aren't going to hell in a handbasket will happen right around that time.
Someone suggested Swiss Francs to me a few days ago, and I have been looking into them since. So far, I like what I see.
watch out there...the Swiss are freaking out b/c everyone is running to their currency and making it to strong! So there might be some wild swings!
When Soros has decided he’s made enough money on his short positions . . .
DEFLATION! Coming to an economy near you. Bernanke failed the application of his studies
They are starting to print money now too. Every Central bank in the world with any amount of blank paper and ink has figured out the game. It is a currency race to the basement.
ping for later
What you’re seeing is a replay of the events that led up to the autumn of 2008, specifically European bank instability. The word is now out in the open: the EU cannot prop up Italy and Spain. They just can’t. The bond markets are telling these two deadbeats that they want confiscatory yields to buy their crap paper.
Italy has a huge debt book to roll over in the next three years. Hundreds of billions of Euros. The German treasury and banks don’t have enough money to backstop Greece, much less Italy and then Spain.
As of today, the FSA in the UK has asked Brit banks for a disclosure of their positions to Belgium, because it looks like Belgium is next on the block.
As bad as the stock market gets, as bad as the commodities markets get... pay attention to the bond markets. The bond markets are where you see the real action, the deep currents in the financial markets are there.
Silver, being natively more volatile than gold, has been taking a bigger hit than gold, and will continue to do so for the duration of the crash scenario. Speaking historically, these types of sharp downmoves have a strong tendency to last either 2 or 5 trading days (3 and 4 days hardly ever come up for these types of moves; very odd indeed).
Good trading to you!
Silver is now down 7.4%. A buying opportunity may be coming up shortly.
You're obviously not a trader and neither am I now. I'm not offering advice, but what I've done is to diversify to some extent and not lose sleep over the coming volatility.
What you move your wealth into, depends upon the amount of wealth you have. That said, common sense of priority applies no matter how much you have.
By that I mean take care of the essentials first (food, water, shelter, clothing, protection, friendships/networking, energy, communication, transportation, tools, medical and at least some REAL money that you can easily get to). Prepare for dealing with the absolute worst case scenario (living in basements, city sewers, caves, tunnels, deserts, plains and forests - man has survived thousands of years). It costs the least and every other possible scenario can be built from that base of preparation.
After getting that out of the way and back to what to do with remaining wealth, diversify (PM (physical & certificates), property, land, means of production, some cash, high value stocks).
Best alternative currency, IMO, is the Canadian dollar (CAD). Canada is next door and close enough for some to go there and open a banking account. Keep it below 10K or suffer reporting requirements. Others currencies to look at are AUD, NZD, NOK, SGD, and CHF to name a few.
Failure to reign in the spending last week signaled to me that we're on the same path as ALL other countries in history who eventually spent their way into oblivion.
I don't like saying that. Can it be reversed? I seriously doubt it. I'm not saying we shouldn't do our best to try. Our best chance is to have a significant portion of the populace prepared and not dependent on government if a collapse occurs.
silver and gold down because of margin calls in equities - people needed to pull money from safe-haven’s to get out of equities fast.
The thought of buying on margin always gave me the willies.
Days like today make being a wallflower not such a bad thing.
When no one but the fed buys the T-bills the stock market will crash much worse than today. The Swiss and the Chinese might buy some early T-bills at 6% but that will cause the fed to intervene and buy them at bargain prices.
Is it just coincidence that this is Shark Week on the Discovery Channel? I think not. My lunch has been ate by Wall Street. I know . . . I know . I should’ve sold stocks last week. I’m holding tight but this is stomach churning to see.
Thanks, guys.
I’ve got the food, water, guns and ammo.
Like I said, reminds me of Doug Heffernan. Actually, I don’t have stocks. It’s gut wrenching anyway.
But, like an old man once told me, “I made money today. Gold went down and I don’t have any.”
I know how you feel. Been there, done that. If you have high value stocks, once people realise their dollars are going to be worth less, the price should rise as folks start buying stocks again. That’s just a guess...
The trade I like right this minute is buying a straddle on Swiss Franc, specifically the Dec 130.50 strike.
Good trading to you!
You should consider trading options. They are all-cash items that offer some leverage. A long options position cannot ever, by rule, have a margin call.
Also, stacks of margin calls in futures accounts will be sent out today, and the traders know it and are liquidating positions left and right. Virtually every mkt is down except for bonds, USD and hogs (for some odd reason). The risk-on traders are having their heads handed to them today.
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