Well, a key Bay Area bridge is closed for repair in California, so we won't be flying to Oakland today....might as well think out loud here as I awoke with nagging questions. The biggest is why I havent been able to make money in 3 years. XOM, rock of all rocks, is struggling at the same share price as Oct 2006. Insiders, crooks, and some cold traders have survived best, but my ethics, connections and personality prohibit even attempting such. Short term trading made me less a caring person and hurt my family.
Buying and holding quality has to work or I am screwed, but those pesky carry trades...you know, the YEN one and now the DOLLAR one are causing dislocations and unacceptable volatility and corrections as they "unwind" from time to time. Too many get on the same side of the trade, you see, and markets are forced by nature to move back towards equalibrium.
Carry trade is basically the borrowing of money from a country at zero or near zero interest rates and then investing it for higher interest rates elsewhere. The age of manipulation and artificially held rates is making this possible as currencies all position for the race to the bottom as fiat is doomed. If the dollar carry trade is unwinding, then we are at the beginning of pain, not near the end...and one could expect up to 6 weeks of melt down.
So I ask why has the $CAN dropped 6% against the $US in only 2 weeks, and why has the CDNX with 48% PM stocks melted from 1340 to 1260? Why can I almost feel you folks holding your collective breath all the way from Houston.
There's a new "sheriff" in town and he ain't from these parts. Even he isnt sure where he is from. That "sheriff" is carrying a 6-shooter that can stop VALUE dead in its tracks. I like my silver but not fired at me in bullet form. Something beyond value has taken over markets in a stepped up era of open manipupation and fraud. The honest and vigilant guy is excluded fronm the game....or forced to pick up his chips and go home.
Today could bring a reprieve, but there is something building into November that gives my bones the willies. I no longer need money for myself...life has been good and long enough. I need money for the fiscally ignorant folks whom I love and care about. I hope to leave them a fighting chance. But that first person who said "Ignorance is bliss" was no fool. Could many folks even bear to know what we here know?......pic
