Perhaps the most baffling aspect of the Elon Musk "Funding Secured" tweet is the number of financial media outlets and so-called "analysts" that are taking it seriously. The idea is a complete joke. Any valuation in excess of potential asset value minus the debt and other liabilities (included in "liabilities" will soon be a flood of lawsuits). Some bucket-shop stock analysts issued reports explaining why a buyout of Tesla (NASDAQ:TSLA) could occur at an even higher price. We're beginning to wonder if the Tesla buyout idiocy will mark the end of the valuation insanity that has permeated the entire U.S. stock market... Meanwhile, hedge funds assumed a record short position in Comex paper gold futures. This along with the worst sentiment toward the precious metals since early 2001 and late 2015 suggests the potential for a bottom in gold, silver and mining shares.
In this episode of "WTF Just Happened?", we discuss these issues plus offer a view on the correlation between the dollar-price of gold and the $/yuan: