Michael Yorba
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FROM THE FRYING PAN TO THE FIRE
What a week of trading….. We do our best to talk with professional traders who have seen just about everything there is to see when it comes to trading and chances are no one has been trading since 1928.
Most of our guests on Commodity Classics have the advantage and edge of trading for more than 20 years and some 40+ professionally.
I have only been trading for 28 years but in my view, I believe we are in for quite a ride.
One of the first issues traders and investors could face this coming week is the repercussion of a credit lockup for another 2 weeks. The next issue is the quandary of how does one trade themselves out of this situation.
Sure, the US Government passed the Bailout Bill but, it is still a 1Trillion dollar solution to a 60 Trillion dollar problem.
In the past 2 weeks the USD has had numerous large entities buying it to hedge their liquidity problems. Those hedges will need to be unwound sooner or later, and now that the US Treasury will start to make pledges to buy back this debt, we could see foreign banks having less need to hold the USD, especially if our Government is going to dilute our dollar starting with another 1 Trillion
Foreign banks may not want to own other types of our debt, considering just how well the last deal turned out.
As a matter of fact, I think that we will start to see more repatriation of sovereign wealth such as the Irish banks that have been repatriating funds from Greek banks as recently as last week. As with most people, with uncertainty in the air and an unclear picture as to the financial outcome, common sense says; bring the money home to keep a close eye on it.
Now the day of reckoning for the "Credit Default Swaps"... Yup that's the 60 Trillion dollar problem I have been talking about. Auctions start 10/6 and this is when you really start to see the affect on the balance sheet. Until now, it’s been anyone’s guess as to what the net result will be.
I think we could see a top on the USD soon and that there could be a run on metals. Lastly, consensus is that people are tired of worrying about the fine print on the latest hot smokin new kinda super sophisticated deal out of NY.
Michael Yorba
CEO
Yorba TV - The Traders Network
What a week of trading….. We do our best to talk with professional traders who have seen just about everything there is to see when it comes to trading and chances are no one has been trading since 1928.
Most of our guests on Commodity Classics have the advantage and edge of trading for more than 20 years and some 40+ professionally.
I have only been trading for 28 years but in my view, I believe we are in for quite a ride.
One of the first issues traders and investors could face this coming week is the repercussion of a credit lockup for another 2 weeks. The next issue is the quandary of how does one trade themselves out of this situation.
Sure, the US Government passed the Bailout Bill but, it is still a 1Trillion dollar solution to a 60 Trillion dollar problem.
In the past 2 weeks the USD has had numerous large entities buying it to hedge their liquidity problems. Those hedges will need to be unwound sooner or later, and now that the US Treasury will start to make pledges to buy back this debt, we could see foreign banks having less need to hold the USD, especially if our Government is going to dilute our dollar starting with another 1 Trillion
Foreign banks may not want to own other types of our debt, considering just how well the last deal turned out.
As a matter of fact, I think that we will start to see more repatriation of sovereign wealth such as the Irish banks that have been repatriating funds from Greek banks as recently as last week. As with most people, with uncertainty in the air and an unclear picture as to the financial outcome, common sense says; bring the money home to keep a close eye on it.
Now the day of reckoning for the "Credit Default Swaps"... Yup that's the 60 Trillion dollar problem I have been talking about. Auctions start 10/6 and this is when you really start to see the affect on the balance sheet. Until now, it’s been anyone’s guess as to what the net result will be.
I think we could see a top on the USD soon and that there could be a run on metals. Lastly, consensus is that people are tired of worrying about the fine print on the latest hot smokin new kinda super sophisticated deal out of NY.
Michael Yorba
CEO
Yorba TV - The Traders Network