The Confidence Game, Round Two.

By Jon Nadler
06 October 2008 @ 04:42 pm EDT

"Blacktober" continued to unfold in an ominous manner as the new week got underway. Many markets acted as if the US bailout package vote had never taken place last Friday. Back in early February of 2007 (seems like an eternity ago), I wrote that the apparent end of the yen carry-trade would "alter the global financial landscape for years to come." Little did I know what degree of 'alteration' this new phase in the financial would usher in. We opened the week with global stock markets in major freefalls, the strongest US dollar in over a year, oil prices in the high 80's, and gold still only barely surpassing the highs it recorded in 1980. Perhaps if we give it another green light to run for $925 given these conditions...(oh well, it did not take the advice last week...).

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