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A Bet Against The Banks

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Email This Page: Topic: Other — February 14th, 2008
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Aside from our main investments in gold, silver and uranium, we have take a speculative position on the US financial sector.

IYF 130208

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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