Tuesday, August 28, 2007

The Hidden Reality

exerpt ;

The hope for every central bank is that the real problem can be kept from public view. The truth is the public, even professionals in Wall Street, have no clue what the problem is. They know it has something to do with derivatives, but none realize it is a more than $20 trillion dollar mountain of unfunded, unregulated paper that has just been discovered to not have a market and therefore any real value.

This is why I have suggested you plan for the worst and hope for the best. Taking cautionary action before a problem occurs only requires some of your time. If you wait and try to clean up the mess after a problem happens usually there is no action that can be taken.

When the US dollar realizes the seriousness of this situation, be that now or sometime soon, the bottom will drop out.

The dominos are falling and only a few really know why. Sometimes I wish I did not understand derivatives. I would certainly be held in better light.

Author: Jim Sinclair

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