BelaOthello

Oil Bubble Continues Its Burst

With all due respect to the people who have made comments on here, everyone seems to be missing the critical key issue just as the media and the government although statements keep stumbling across the results of the key issue. Last month was a global margin call which resulted in the selling of ALL ASSET CLASSES and especially those investments which made the most sense like oil, gold, and technology. Countries, large institutions around the world, and central banks were deleveraging the currency trade based on the Yen where trillions of dollars were converted from primarily EUROS TO YEN (which is why you guys should watch the EURO YEN) not the Euro dollar and then these Yen were then leveraged up in many cases 400 times to reinvest in the stock market, oil, and gold as an inflation hedge. Notice how when Bernanke made things 10 times worse back in August 2007 this trade was put on in mass by the world again which is how the Dow went from 11,000 to 14200 and how Gold went from 700 to 1000. But guess what? Party ended in October when the Yen rose and everyone THE WORLD headed for the exits and it made matters worse like a snow ball effect like never seen since the creation of the stock market. It is still a threat. We trade minute by minute based on the value of the Yen. All the banks around the world are doing the opposite of what they should be doing because they are confused and focusing on the "economic crisis" thinking that lowering rates is the answer but THEY ARE WRONG!!! Although we do have an economic crisis, the world is only making all of the currencies weaker and the YEN STRONGER. We need to raise rates and strengthen our dollar first. Obama needs to speak to the G7 and other world leaders and have Japan, BOJ, lower the Yen temporarily and the do an organized deleveraging of this trade after there is stability. Then there needs to be a ban on this type of leverage forever because of the new age of our markets where ETFs have been created and anyone in the world can trade markets at the push of a button in hundreds of milions of dollars electronically via the Internet. This was never available in the 1930s which is why grey beards are being caught off guard and everyone is clueless right now. Forward this comment to everyone you know and get this to our new President if he is truly going to listen to the People because this is the number one critical issue that needs to be addressed first so we stop throwing our tax paying money in the disguise of a stimulus package everytime the market drops due to the Yen rising. The market is not dropping because of the economy; that was the first 25%!! I can explain it better if I had more time but I hope this helps. I did try and get a message to Rahm Emanuel and President-elect Obama but have not heard back. Regards, Jaysen