A Bet Against The Banks
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| Topic: Other — February 14th, 2008
Aside from our main investments in gold, silver and uranium, we have take a speculative position on the US financial sector.
The problems of the financial sector begun with the sub-prime crisis but we believe it will spread to all areas of real estate and this will have a massive impact on a myriad of financial sectors, such as bond insurance companies, all across the world.
It is clear to us that this Bernanke led Fed committee is nothing but a one trick pony when it comes to solving economic turmoil. The base rate is already below the rate of inflation and although the Fed can continue to cut interest rates as much as they like, the question is: Will banks lend money below the rate of inflation?
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After reading your piece re buying SKF Ultra Short stock the next thing I read was the following excerpt from an other website.
Legendary bond house Pimco revealed this week that it has begun taking stakes in Bank of America and Citigroup.
“The fact that the banking sector has attracted fresh capital in the last couple of months is huge,” said Mark Kiesel, an executive VP at Pimco. “We’ve been playing defense for the better part of two years, and the question we’ve been asking ourselves is when to go on offense. In the banking sector, we’ve started to do that.”
More food for thought?
Gene Shannon
Comment by Gene Shannon — February 14, 2008 @ 7:36 pm
We would like to take a positive view of the situation but we just cant bring ourselves to trust them, the banks that is!
Comment by Silver Prices — February 18, 2008 @ 4:37 am