ACEMAN

Financial Credit Default Swap Prices Return to Earth

Y'all have to understand that if y'all look at CDS's as a commodity that not only has a built in market but that can be inventoried, held if there is no acceptable risk premium, and sold by contract for delivery at a specific time and place or optionized, then y'all can see exactly where in the supply/demand cycle you can buy, sell, or trade. It might be perceived as a "paper" instrument, but it has all the elements of a hard commodity and it's discernible business cycle, too. In this way, y'all is looking straight at the commodity and not having to guess where it is in process. It's like having y'alls beignet and eating it too.

Will the Dollar Recovery Launch a Bank Rally?

RBS is an interesting bank, indeed. But why no discussion on its rights offering, the acquisition and integration of ABN AMRO, and its writedowns due to CDOs and related mortgage problems affecting the balance sheet. However, it could be a sleeper. What is your price target 12 months out?