China & a Bank default

[Mega]

http://thefundamentalview.blogspot.c...efault_03.html

Your thoughts?
Mike

[ThePythonicCow]

Re: China & a Bank default

Very interesting. After reading this I went short the S&P 500 (the 'SH' ETF) with a little of my play money, and cranked up my gold holdings a little more.

It would be sweet irony if it were oil derivatives that took down JPMorgan and Goldman Sachs, after those banks and oil, the dollar, and the U.S. military had dominated so long. Well, bitter sweet, seeing as I am still a proud American and intend to live the rest of my life here.

We've saved the world from fascism, the nazi's and communism. Now lets see if we can save the world from ourselves, with a little help from the Chinese.

[WildspitzE]

Re: China & a Bank default

Good find Mega.

I've been trying to reconcile what is going on in the event driven space, I think we're all comfortable here with the LT trends and views.

Something is up (other than gold's pirce hehe). Gold spikes, Oil limps around, Bank(s) failure rumors, potential derivative default, today's SDR news, and HK Gold pull.

Interesting hypothesis in that post. Given that 10,000 pairs of eyes are better than one, it would be great if we could consolidate news that either supports or discredits the underlying hypothesis in one place.

[ASH]

Re: China & a Bank default

http://thefundamentalview.blogspot.c...efault_03.html

Your thoughts?
Mike

My thought is that this is a good link to read.

I have been wondering why various markets have behaved as they did recently. The theory laid out by The Fundamental View is intriguing but also sensational. I noticed the news of China allowing state-owned enterprises to default on commodities derivatives contracts go by, and wondered about impact. This theory sounds plausible to me, but as is usually the case, I don't feel like I know enough to decide. It would be nice if one or two of the iTulip members who are connected to banking could comment.

[jtabeb]

Re: China & a Bank default

My thought is that this is a good link to read.

I have been wondering why various markets have behaved as they did recently. The theory laid out by The Fundamental View is intriguing but also sensational. I noticed the news of China allowing state-owned enterprises to default on commodities derivatives contracts go by, and wondered about impact. This theory sounds plausible to me, but as is usually the case, I don't feel like I know enough to decide. It would be nice if one or two of the iTulip members who are connected to banking could comment.

I don't mean to hijack your post. But though that this was tangentially related (and hopefully informative).

But I just wanted to point out something I said a LONG time ago.

(along with "buy the deflator")

Remember when I said the first group that dumps FIAT first wins THE MOST (and that THAT ACT will force all others to follow suit?)



Well, it looks like it is ACTUALLY HAPPENING. We won't be able to reform ourselves, but the Chinese, through the domino effect, may be able to do just that. Absolutely AMAZING development.

Rock vs. Paper? In this case, ROCK TRUMPS PAPER.
This is a SEA CHANGE we are witnessing of ENORMOUS SIGNIFICANCE!

See here:

http://jessescrossroadscafe.blogspot...home-from.html

my favorite quote?

"Strange times indeed, when the hard money capitalists are in Asia, and the fiat money oligarchs and statists are in the Anglo-American West."

[Mega]

Re: China & a Bank default

The 2 major rules of Wall St/City of London

1st don't panic
Panic 1st


Mike

[Down Under]

Re: China & a Bank default

http://thefundamentalview.blogspot.c...efault_03.html

Your thoughts?
Mike

I agree with others, this is definitely worth a read. Does iTulip have a position on OTC derivatives? I know I searched some time back but couldn't find much.

Buffett's statement, something along the lines that "OTC derivatives are weapons of financial mass destruction", along with Jim Sinclair's assertion that they have destroyed the financial system, has always caused me great concern.

Yet, in iTulip land, they don't appear to pose the same level of concern. Comments welcome.

[rabot10]

Re: China & a Bank default

It would be nice to get an EJ, FRED view of this. Even if they think its just BS

[cobben]

Re: China & a Bank default

"Oil limps around"

Been trying to decide where to post this, why not here.

The world's "regulators" seem to going after the "evil speculators", each in their own cuturally unique inimitable way. :rolleyes:

Easy to guess that all of these diverse "oil derivatives - naughty" positionings might result in a new oil price crash, but extrapolating just a little, might there not be a general crash of all leveraged "stuff" as the cowardly banksters run for cover?

Huge ETN Euthanized
http://www.thestreet.com/story/10594...uthanized.html

" . . .
Wednesday, however, was a landmark moment for the ETF industry, as Deutsche Bank(DB Quote) euthanized the wildly popular PowerShares DB Crude Oil Double Long ETN(DXO Quote).
. . . "

[*T*]

Re: China & a Bank default

The 2 major rules of Wall St/City of London

1st don't panic
Panic 1st


Mike

AKA the last scene in Resevoir Dogs (as I believe you mayhave pointed out).