Enzio's Clock - Public Appearance: Online Video Clips - Comments

Thank you for your

Enzio — Sun, 11 May 2008 18:54:43 +0800

Thank you for your contribution. Our Theme Fund bought PHPT:LN on 5th November 2007 and on 25th March 2008. I am happy to say that this ETF is up 34%.

Good morning- I saw this on

heyduce — Sat, 10 May 2008 23:04:33 +0800

Good morning- I saw this on Reuters this morning, and wanted to share it with those who were looking for a means of investing in Platinum.

NEW YORK/LONDON, May 9 (Reuters) - Platinum ended sharply higher on Friday as the launch of U.S. platinum exchange-traded notes boosted sentiment, while gold also finished up on record crude oil prices.

Investment bank UBS launched two ETNs offering long and short trading strategies in platinum. ETNs, unlike exchange-traded funds, do not purchase physical platinum to back the number of shares sold.
The two ETNs -- UBS E-Tracs Long Platinum ETN (PTM.P ) and UBS E-Tracs Short Platinum ETN (PTD.P) -- started trading on Friday on the NYSE Arca platform.

http://www.reuters.com/article/goldMktRpt/idUSL0968378320080509?sp=true

You have hit the nail on the

Enzio — Sat, 10 May 2008 15:47:06 +0800

You have hit the nail on the head with your last sentence, Sir. Wait until the excess supply of goods really hits - it will be a financial "Burma".

In your frst two, astute points: view Fed credit at helping banks bail out from their write downs; they have to maintain certain ratios in order to comply, and that has to be what the bulk of this Fed bail out lending is about.

Greetings from rainy and windy Phuket,

Enzio

Is my understanding of the

DrDog — Sat, 10 May 2008 02:00:21 +0800

Is my understanding of the Actions of the Central Banks and the Commercial banks correct?

1. The Fed is trying to help the commercial banks and Investment banks by offering cheap dollars for them to borrow in order that they do not fail and secondly the Fed is hoping the commercial banks will start lending to everyone?

The commercial banks and investment banks are borrowing the cheap dollars offered by the Fed, but only to strengthen their Financial Statements with no intentions of lending to others?

Isn't it logical for the Banks to borrow the cheap money, strengthen their financial statement and then start lending as quickly as possible, after all, their business model is to collect interest on loans? So, why won't the banks lend. Do they believe the economy is so bad that every one is a credit risk?

Dear Van,Here are my

Enzio — Sat, 03 May 2008 16:28:03 +0800

Dear Van,

Here are my thoughts.

...if it is possible to have a significant credit deflation without a corresponding economic recession/depression?

Yes: if the government pushes its fiscal levers, a recession can be avoided. This is what Keynes taught us. But the growth that results from such fiscal injections would be quite weak; only the business gusto of the private sector can create sustainable, meaningful employment.

Additionally, and circling back to my original comment about 'forced credit liquidity' - is it possible that the banks, much like hopeless junkies, have no choice but to continue with their reckless lending practices as the only way to 'control' their asset values?

At present, banks are pulling back their lending, as you know (see your first question). I don't see reckless lending as the culprit. Instead, it is the reckless issuing of leveraged houses of cards (senior debt, credit default swaps, etc) that will cause a financial meltdown...

Lastly, is it out of the question that large banks (UBS etc.) could directly intervene to prop up their quoted share prices on the open markets?

I am sure that they already are doing this - through
"third party" props funds that they own but that are off balance sheet items for them....Your point on SKF:US is well taken, Van.: this financial sector "short" has fallen by 33% since 10th March!

After scratching my head

vanzell — Sat, 03 May 2008 02:11:25 +0800

After scratching my head continuously over the past few weeks I wonder (that's a question for Enzio) if it is possible to have a significant credit deflation without a corresponding economic recession/depression? Additionally, and circling back to my original comment about 'forced credit liquidity' - is it possible that the banks, much like hopeless junkies, have no choice but to continue with their reckless lending practices as the only way to 'control' their asset values? Lastly, is it out of the question that large banks (UBS etc.) could directly intervene to prop up their quoted share prices on the open markets? (take a look at SKF Apr 14-18 and overlay with all news releases related to the financial sector during this time period)

Regards,

van

Pundit of the Week!

heyduce — Mon, 28 Apr 2008 22:40:11 +0800

Pundit of the Week!