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Odds 'n Sods:
Courtesy of reader KBF: J.P.
Morgan
Says Banks Face "Systemic Margin
Call," $325
billion hit
o o o
When I last checked, the US
Dollar Index was down to 72.260, and falling
rapidly.
Consider this a final warning: If the USD Index drops below 72, the
next likely trading target will be approximately $1.75 to buy a Euro. Keep
in mind that 72 is the magic number that The
Chartist Gnome warned us about. Quit dawdling and get out of
your dollar-denominated investments! OBTW, on a related note, here is a piece
(by way of Eric) from Forbes: Fed
Doing In The Dollar. It seems very likely that the Federal Reserve
will make another 50 basis point (1/2%) cut decision at their planned March
18th meeting. This would surely mean a lower dollar and higher precious metals
prices.
o o o
Reader Charley S. flagged some
economic commentary at TruthOut.org. Here is a brief excerpt: "Suddenly,
the very notion of paper money, a sort of rubber check, has lost its credibility.
As a corollary to that disaffection, investors are switching
en masse to physical assets such as gold, land and the real estate and infrastructure
of countries experiencing strong growth."
o o o
I Told You So Department: Seven
Hedge Funds controlling $5.4 Billion have been forced to liquidate or suspend
redemptions in the past month. Back in September and October of Aught Seven, I
warned specifically about the ability of hedge fund managers to suspend redemptions
without notice.
Well, now this is exactly what happening, on a grand scale.
