Public Starts To See True Scope Of OTC Derivative CrisisSubmitted by SIERRAHPBT on Fri, 09/26/2008 - 17:27
We are apt to shut our eyes against a painful truth... For my part, I am willing to know the whole truth; to know the worst; and to provide for it. --Patrick Henry
Posted On: Friday, September 26, 2008, 2:15:00 PM EST
Public Starts To See True Scope Of OTC Derivative Crisis
Author: Jim Sinclair
What more can be said? The amount of money being discussed today along with the argument of why should the average American have to take on OTC derivative losses (can you imagine anyone reluctant to pay off Wall Street losses?) is not even scratching at the funds that are going to be required. Monty's estimates range from a low of $5 trillion to a high of $20 trillion. Some think the amount might even be higher than Monty's upper estimate. The public is quickly getting the idea of just how bad the problem is while the Wall Street types are still being paid huge bonuses for doing things like creating bankruptcy.
CONSEQUENCES will only increase as the supply of dollars increases. As dollars come under pressure from the excess supply, gold will rise to $1200 and then $1650.
CONSEQUENCES is the stuff that even spin cannot delay or change.
Look at one days borrowing - Wednesday.
The comforting feeling to the general market is that relief comes Sunday, when a compromised bailout deal will be announced. What few are focused on is that there will be another Sunday, and another Sunday, and another Sunday.
The media has convinced many that this is a one off event that if it does not fix everything, at least the crisis will not reappear.
This covers all one needs to know now.
For those like myself that consider Harry Schultz to be the Dean on markets, I suggest you seek what his opinion is NOW.
Stay the Course.
Dear Mr. Sinclair: