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Reversal Night 3/24/20


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3 minutes ago, fxfox said:

and don't get me even started on Silver :lol:

I mean the whole silver market was owned a few decs ago by one single South African family. It wasn't even a real family, it were two brothers. :lol::lol::lol:

They were American. The Hunt brothers.  

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29 minutes ago, Jimi said:

Futures markets are built with expectations/capacity foe delivery of the underlying. 
which is to say, their original purpose was to support/finance/hedge real economic activity. 
Like the corn or hog farmer, who sells production into the future at a price today that assures profitability. 
Or the sausage maker or breakfast cereal maker who buys those same futures. 
 

Yep. Till that time Futures a more or less "good thing" to some extent at least.

But why on earth did nobody do anything when it became obvious in the early 80s (or was it late 70s?) that banks/funds/asset managers started to gamble with futures and that with monster leverage??? At that time and once Futures were used for pure speculation and gambling the shit we are in today began. It began under Reagan, right?

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29 minutes ago, Jimbo said:

THE GREAT INFLATION TRADE

The Fed has to go full inflation to save the Financial Industrial Complex.

Otherwise its straight debt default.

And they wont allow that.

There is simply too much debt in the system to ever repay in real terms.

Real assets yes financial assets no will be the mantra from now on.

Very 1970's.

Just for clarification: Do you mean that Real Estate goes thru the roof, but a stock of a real estate company not? The RE stock would be a financial asset in my view.

 

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4 minutes ago, fxfox said:

Just for clarification: Do you mean that Real Estate goes thru the roof, but a stock of a real estate company not? The RE stock would be a financial asset in my view.

 

If you look at the 1970's post Nixon closing the gold window than yes, real estate kept value in real terms almost but stocks in real terms did poorly. 

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6 minutes ago, fxfox said:

ah right, those were the two. :lol: But I think they were based in Johannesburg.

William Herbert Hunt is an American oil billionaire, who along with his brothers Nelson Bunker Hunt and Lamar Hunt tried but failed to corner the world market in silver. According to Forbes, as of January 2015 his net worth is estimated at $2.0 billion. Wikipedia

They are and were well known in Dallas-Ft. Worth TX.

  W.H. Hunt still lives in Dallas, the others have passed away.

 

 

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Potatohead, you could say the same thing about a lot of traded financial assets. If traders were required to settle trades at the moment the trade was made trillions of dollars would vaporize. That's why big traders are totally against a block-chain style market. They've built empires on those dollars. The underlying just isn't there. 

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