Thursday, September 13, 2007

Markets Mexican standoff - "the asymmetrical nature of a Mexican standoff means that - in the event of conflict - each party will face a tactical decision as to which other party to strike first."

USD moves to record lows against the Euro as a Fed rate cut looms. How will our biggest creditors Japan and China feel about this ? Not too good I'm sure.

Paulson points his finger at the mortgage lenders for the subprime crisis. Paulson needs to remember that for the finger he points towards the mortgage lenders, there are three finges pointed back at him. Was he not the boss at Goldman Sachs during this period of subprime excess. Did Goldmans not help securitize and sell mortgage CDOs to investors ?

The market so far has opened very bullish. Probably a good move would be to fade this rally. Gold and Silver are weak though with a falling Dollar I expect them to gain strength.

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