“…Once you get that big, you can’t get out. And once you can’t get out, you’re done…”
“…Paulson is still betting that the return of inflation and a meltdown in global currencies will save his gold investments…”
http://www.guardian.co.uk/business/2013/apr/21/john-paulson-midas-touch
Just as we said before:
1. too big to trade like the Hunts in 1980
2. it’s not your grandfather market anymore
We had moved from a market of print print print, to one where even Helicopter Ben does not even want to go to Jackson Hole. Helicopter Ben was keynote speaker every year since 2006 because the theme was print print print. Who talks about dropping money off helicopters better than Helicopter Ben?
http://www.bloomberg.com/news/2013-04-21/bernanke-to-miss-jackson-hole-conference-with-schedule-conflict.html
In yours truly mind, dropping money off helicopters is old-school. The fear of a bond market implosion will ensure that the elites and their official channels will repeat after Wolfgang Schaeuble. Now is the time for taxes. In the minds of some finance ministers, printing does not promote sustainable growth… but taxes will? So taxing the private sector to pay off the bondholders is good for growth?
“…But pumping liquidity into their economies without far-reaching structural reforms would not create the conditions for sustainable growth. Mr Schaeuble said. Mr Schaeuble also said he supported a global minimum corporation tax rate and that he remained committed to tackle evasion and tax havens…”
http://www.telegraph.co.uk/finance/financialcrisis/10006065/ECB-should-limit-amount-of-liquidity-in-the-eurozone-says-Wolfgang-Schaeuble.html
In any case, it is time for taxes. In the age of taxes, stay away from that dead gold cat till Paulson throws in the towel.
Good luck in the markets.