The world biggest hedge fund the US of A - -renamed: Leverage Ponzi Inc.

Quick-comment this am:

Subject: This is getting worse than 1992 ERM crisis - distrust at new highs

This is getting worse than the 1992 ERM crisis - distrust at new highs... I expect EXTREME US Dollar yield in money market to be main issue into turn of the month..- yes even bigger than HBOS, Barclays and BoA getting nationalised!

The maximum pain in any financial system is the lack of funding - the banks no longer trust each other at all. Everyone is refusing to lend outside overnight - but EVERYONE is willing to give Fx forwards EURUSD ..taking in US Dollar deposits @ 5% and higher (in 3.25%).... this morning market is paying into 1 mos!!!!! (I cant say this enough - this is WORST part of this cycle)......
EURUSD Basis swaps... new high -- Chart 1

(Click on chart for bigger picture)

...having lowered my S&P to 770... I am MAXIMUM negative on stocks - keep 75% cash!

AIG bail-out 85 bln. ==> Price: 850 over LIBOR - nice one... so they will run out money SLOWLY instead of this week--- Idiots...

US biggest hedge fund now .. 900 bln. of toxic waste - chronology: Save Inv. bank, Save Mortgage Inst., Save insurance, next? Leasing? Soon Fed will accept used cars as colleteral.... US hedge fund will bear the name: Leveraged Ponzi Inc -

if this market not realising this is BIGGEST CRISIS since 1987 it never will.. Asia paying 25% of o/n US this morning...? Remember IEP o/n in 25.000% ?

Good luck Ladies and the few Gents ...

Med Venlig Hilsen Yours Sincerely Steen Jakobsen, Chief Investment Officer, Saxo Fund Management Saxo Bank A/S -London
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