Comments on: FDIC Sees Red

By: EDN

EDN — Fri, 27 Nov 2009 21:20:44 +0000

Agreed that the timing is awful suspicious. It would almost have to be a coordinated effort to get it to land the way it did. So the obvious question is: What did they hope to gain by timing it this way?

The answer is, this was a way to get the foreign central banks into the mix. Dubai’s problems are small compared to the problems being fought elsewhere. They are hoping they can get the FED or the England’s Central Bank to rub money on the problem in order to avoid contagion in their own region.

Check out: http://maps.google.com/?ie=UTF8&ll=25.209445,55.16716&spn=0.533024,0.758057&t=h&z=10

Neither Palm Tree is fully occupied yet. And the Global World set of islands looks like it will never be completed.

By: BMB

BMB — Fri, 27 Nov 2009 18:16:06 +0000

Sell first, ask questions later.

By: Maria

Maria — Fri, 27 Nov 2009 17:18:25 +0000

What smells bad is Dubai announcing their “problem” right before a long US weekend holiday, and a week and a half holiday in the Middle East. This, after two months ago saying there was no problem. This, after two weeks ago saying everyone needed to “shut up” because there was no problem. Well, well, this folks, is a problem.

But as BMB said, every asset gets trashed when big news like this happens. Ultimately people may flow back into hard assets like gold/oil and so on–but at the moment, it’s the turtle move–pull your head and all appendages inside the safest haven you can find in hopes nothing gets cut off.

By: BMB

BMB — Fri, 27 Nov 2009 16:51:50 +0000

Short term, with the percentage of dollar ‘bulls’ being in the low single digits, the trades can really unwind in only one direction, that being dollar positive. Right now, most everyone is on the same side of the boat, that being short the dollar.

People seem to forget quite quickly how fast and hard the dollar rallied and commodity prices came down less than two years ago when things got into trouble. Everyone was short the dollar and long commodities — it doesn’t seem that different now.

Longer term, anything is possible.

By: Anonymous

Anonymous — Fri, 27 Nov 2009 16:34:45 +0000

When things start to get shaky, money is going to flow out of everything — including gold — and likely back into the dollar.

The problem is it is impossible to predict which way the stampede will go. Historically, people have run to the US Dollar. But that exit path is getting more and more questionable. We aren’t even sure how many Treasuries are being bought by foreign governments any more. Solid data is getting more and more difficult to come by.

And one more thought: We have seen the US Dollar and Gold both being ‘Go To Assets’ at the same time in the recent past.

By: BMB

BMB — Fri, 27 Nov 2009 13:59:50 +0000

When things start to get shaky, money is going to flow out of everything — including gold — and likely back into the dollar.

By: Bruce

Bruce — Fri, 27 Nov 2009 07:53:49 +0000

In the dark of night – something smells really bad with this Dubai thing. And look at the gold chart when we all sleep…. something smells bad with the timing folks …

By: BMB

BMB — Thu, 26 Nov 2009 13:46:22 +0000

So far, they’ve been able to keep issuing Treasurys without much problem. Of course, we’re not sure who’s buying them, and how many of them are eventually just ending up back in the Fed’s hands.

By: Henry

Henry — Thu, 26 Nov 2009 06:54:08 +0000

Wave of Debt Payments Facing U.S. Government

http://www.nytimes.com/2009/11/23/business/23rates.html?_r=1

http://www.businessweek.com/investor/content/nov2009/pi20091125_103208.htm

By: Bruce

Bruce — Thu, 26 Nov 2009 06:47:10 +0000

WOW! – Gold on a romp again over night