Early Weekend Reading - II

Jim Sinclair’s Commentary

The Federal Reserve is giving away billions of unsecured money.

Follow this money. The Fed loans JP Morgan funds on an UNSECURED basis (no asset collateral). JP Morgan then loans that money to Bear Stearns on a SECURED basis. This means Bear Stearns had to put up collateral to borrow the funds.

This is a close match to the Weimar Situation. What ever liquidity is required will be produced to an infinite level.

http://www.bloomberg...6...&refer=home
Bear Stearns Gets Emergency Funds From JPMorgan, Fed (Update5)

Jims always a good read. He's getting an awlful lot of "I told so's" in lately. good for him if he's right. Frankly I don't think anyone could possibly be sure where this will all end. He seems a little too certain for my money. That said it always makes sense to protect one's self financially or otherwise. Main street Joes could use a little more doses of his reality to at least get a tiny sense of what may be upon us. For the most part I think 99% of the folks out there are quite clueless about any of what he speaks. He is though one of my fav drama queens ! He ranks up there with Glenn Beck...

I don't think it is a stretch to make this prediction although I may be wrong but, I predict Alan Schwartz resigns tomorrow. Considering what he said a few days ago in regard to BS's capital position, he has as much credibility now as Client No. 9.

Edited by milbank, 14 March 2008 - 05:11 PM.

I don't think it is a stretch to make this prediction although I may be wrong but, I predict Alan Schwartz resigns tomorrow.
Considering what he said a few days ago in regard to BS's capital position, he has as much credibility now as Client No. 9.

totally agree with that one...what a.....well ya know what he is