Courtesy of reader KBF: J.P. Morgan Says Banks Face “Systemic Margin Call,” $325 billion hit
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When I last checked, the US Dollar Index was down to 72.260, and falling rapidly. Consider this a final warning: If the USD Index drops below 72, the next likely trading target will be approximately $1.75 to buy a Euro. Keep in mind that 72 is the magic number that The Chartist Gnome warned us about. Quit dawdling and get out of your dollar-denominated investments! OBTW, on a related note, here is a piece (by way of Eric) from Forbes: Fed Doing In The Dollar. It seems very likely that the Federal Reserve will make another 50 basis point (1/2%) cut decision at their planned March 18th meeting. This would surely mean a lower dollar and higher precious metals prices.
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Reader Charley S. flagged some economic commentary at TruthOut.org. Here is a brief excerpt: “Suddenly, the very notion of paper money, a sort of rubber check, has lost its credibility. As a corollary to that disaffection, investors are switching en masse to physical assets such as gold, land and the real estate and infrastructure of countries experiencing strong growth.”
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I Told You So Department: Seven Hedge Funds controlling $5.4 Billion have been forced to liquidate or suspend redemptions in the past month. Back in September and October of Aught Seven, I warned specifically about the ability of hedge fund managers to suspend redemptions without notice. Well, now this is exactly what happening, on a grand scale.