THIS ECONOMIC DEPRESSION WAS CAUSED BY ONLY ONE THING...
THE SWITCH FROM 40 TO 1 LEVERAGE... TO 1 TO 1 LEVERAGE...OR CASH...
ALL IN A COUPLE OF MONTHS...
IT'S LIKE HITTING A TELEPHONE POLE WITH YOUR CAR GOING 60 MILES PER HOUR...
IT'S NOT THE SPEED PER SE THAT IS FATAL...
IT'S THE SUDDEN STOP!!
SO TOO WITH THIS DEPRESSION... THE SUDDEN STOP IN THE LEVERAGE ...AND THE HEADLONG RUSH TO CASH WAS THE CAUSE...
BUT REMEMBER...WE WERE HAVING A LEVERAGED "INFLATION PLAY" THIS SUMMER IN GOLD AND OIL...
WHAT THE PLAYERS MISSED IS THAT THE SUDDEN UNWINDING OF ALL ASSET CLASSES, INCLUDING COMMODITIES AND THE SUMMER INFLATION PLAY WOULD ACTUALLY BE "GOOD FOR" THE DOLLAR AS THE SUDDEN DEMAND FOR CASH OUT STRIPPED THE SUPPLY...AND CAUSED THE DOLLAR TO RISE...
MY HUNCH IS THAT AFTER EVERYONE IS "IN CASH"...?
THE NEXT "RUSH" TO INVEST...WILL BE OUT OF CASH AND BACK INTO COMMODITIES....IN OTHER WORDS...IT WILL BE "SUDDENLY LAST SUMMER" ALL OVER AGAIN.
AFTER ALL, THAT IS WHERE WE WERE GOING...JUST BEFORE THIS RUDE LIQUIDATION PANIC HIT....IN MID SEPTEMBER...
SO IF THE FED THINKS THE DOLLAR IS OUT OF THE WOODS...AND CAN BE PRINTED WITH ABANDON...THEY MAY BE IN FOR AN AWAKENING...
