Team Hedge Fund

Archive for the ‘Implode’ Category

“We believe the common practice among financial analysts of treating the term structure of interest rates on the sovereign debt of most AEs countries as being free of default risk to be no longer appropriate, if it ever was.”
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“This pathetic attempt to weaken its currency has just cost the BOJ another few trillions yen, while the end result is the same: a Japan whose export economy is about to be crushed, and a central bank president who will now be forced to join the ranks of the unemployed within a month.”
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“If you add the 518,191 and the 674,774 oz of silver you got a total of 1,192,965 oz of silver leave all silver comex vaults. If you want that figure in tonnage it is 37 tonnes of silver. How on earth can anyone remove that quantity in one day is beyond me!!… This inventory probably was put forth to quell a fire somewhere else, probably over in London… If you take the gold part in the CEF as registering anywhere from 2.6-3.3% premium, then the huge physical inventory of silver in the central fund of canada must be registering a real premium of over 15%. The voters are kind of telling us that silver has a massive shortage and investors are willing to bid this vehicle higher.”
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“The Hong Kong-based firm returned what was left in its Asia-Pacific Multistrategy and VolAsia funds last month, CEO Robert Lance said. DragonBack has also parted ways with its investment team, including co-founder and chief investment officer Matthew Barnett.”
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“Property fund managers could face demands for cash collateral to cover bets on interest-rate movements, under European Commission proposals to regulate the derivatives industry. Interest-rate swaps were attached to about 130 billion pounds ($204 billion) of U.K. real estate debt at the end of 2009, according to a De Montfort University study. Most would be subject to such a payment.”
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“Major U.S. banks are under pressure from government officials, as well as groups of investors and insurers, to repurchase or modify bad mortgage loans they pooled into securities and sold to unwitting buyers.”
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“…, we launched an interactive news application to help readers understand the cross-owned nature of Collateralized Debt Obligations (CDOs) in 2006-2007. This cross-ownership helped inflate the bubble, and ultimately made the financial crisis worse.”
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“The S.E.C. has sent subpoenas to investments firms that have done business with the hedge fund, Vision Capital Advisers, Reuters reports… Securities regulators have had PIPE deals — private investment in public equity — increasingly on their radar in recent years. These investments, almost always in cash-starved companies, are privately negotiated and are not registered with the S.E.C. Some deals have led to insider-trading investigations.”
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“A Minnesota attorney and two San Francisco-area hedge fund promoters defrauded investors of more than $21 million by concealing the financial collapse of the fund’s only borrower, the SEC claims in Federal Court.
Minneapolis-based attorney Todd A. Duckson, with the help of Michael Bozora and Timothy Redpath of Marin County, Calif., raised more than $21 million from investors in the Capital Solutions Monthly Income Fund after the fund’s sole business partner, Hennessy Financial, defaulted in May 2008, the SEC claims.”
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On Sept 15th, Brazil’s Finance chief Guido Mantega vowed to defend the country’s exporters, joining other governments worldwide that seek to weaken their currencies as a way of speeding up an economic recovery. “We will not sit on the sidelines watching the game, while other countries weaken their currencies at the expense of Brazil. We’re going to take appropriate measures to stop the real from appreciating,” he declared in Rio de Janeiro.

This is really almost hilarious — a true “tragicomedy.” One certainly gets a picture from this piece on how central banks ’round the world are suppressing their own currencies in a vain effort to boost the dollar, which obviously really really wants to fall. And of course, the Fed wants it to fall — but not too fast. So one wonders when the “jig will be up”, and the grip of the world’s central banks on their own currencies will slip, causing the dollar to plummet. This can’t go on forever. And what cannot, won’t.

The one sure thing is: it can’t hurt to accumulate gold and silver in the meantime.

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