Hi RaksIt is nice to see you shedding some insight, earlier in...

Hi Raks

It is nice to see you shedding some insight, earlier in this thread, into what is going on, in an attempt to calm the forum.

The markets are a mess world wide, and we are getting the ripple effects washing through on the ASX. Maybe to some it looks like a tsunami, and feels like a tsunami, but for mine, I am staying with ripple for now. (I have been wrong before though....LOL) The commodities bull has yet to mature and won't be too willing to go to the abattoirs just yet.

What we have going on here is a clearing of the decks due far too much dining on super charged paper products, albeit sprinkled with lashings of fancy derivatives, all of which are proving just too difficult to digest. They are fanciful investment instruments indeed, dressed to kill and posing as securities, but as we are finding out each day, they have no underlying value whatsoever. And such madness has been spawned by an unprecedented low interest rate regime over many years by the Powers That Be.

The Wall Street moguls accompanied by their pimps, including some of the BIGGEST banks in the world, got too clever by half in conjuring up an exotic mix of products with fancy names like collateralized debt obligations (cdo’s), and structured income vehicles (siv’s) and god only knows what else, all based on shonky loans that at the end of the day, just didn’t have a reliable income stream. Then when the marketing divisions went to work, these products showed up on the books of institutions the world over. And not only does one find that they don't deliver the income they are supposed to after interest rates eventually bucked the trend, you can't sell the bastards either because they are toxic and everyone knows it. Their value was always a contrived event based on complex formulae with a range of miscellaneous assumptions and insured with derivative contracts with underwriters who had no intention or capability of paying up for in the event of disaster. Talk about another Wall Street ponzi scheme acting out in slow motion. It is a disgrace.

The enormous losses being declared by the biggest of the big banks is the only way that they can be removed from their balance sheets. If the investment assets y were half decent they could be sold off. The losses are causing damage to liquidity ratios and asset to debt ratios which is why they are frantically scouring the world looking for cash injections from anyone and everyone willing to lend a hand. If you look at the sources of assistance being offered you will find the Middle East oil magnates and powerful Asian interests coming to the fore. And they are doing that not because they believe that the banks offer exceptional value and they want a piece of the action, but it is a way of unloading surplus American dollars with a chance of preventing systemic failure. They see the huge accumulations of dollars in their possession as mush in any case, as that currency is close to approaching freefall status.

How does this relate to CVI? Simply because as Raks suggested that when the waters recede after the current turbulence, the new investment paradigm is one that will concentrate on companies that are focused on tangible things that are urgently needed in an energy and minerals depleted world. Unlike the paper products that are being churned and increasingly despised by the current financial system, oil and minerals will continue to attract investment, and so will the companies that have the rights to develop them.

Sooner or later the bulls of the commodities super cycle will grow impatient standing around with high levels of hormones and will contemplate a stampede or two to relieve the boredom. Bring on the running of the bulls.... With the super inflationary practices occurring right now in attempt to stem the hemorrhaging of the world's financial system, we are preparing way for the next bubble, and it will be no ordinary bubble at that. It will be the mother of all bubbles and it will have COMMODITIES emblazoned all over it.

Raks, your comment Listen to the quality posters, and you know who they are - t4p, chalea, xan and many others - is on the right track, but at least include yourself and Trent26 in the list.

T4P and Trent26
I was up at 4 am this morning, feeling a little wakeful and took at look at what was happening on Wall Street as well as with the gold price. I then glanced at Hot Copper only to witness the awesome exchange between you two. Well done guys for showing the depth of your personalities and intellect in such constructive and enlightening terms. The CVI threads are certainly in good hands with you two, and I suspect so is the company with its own leadership.

So it is onwards and upwards from here for mine, after the pause that refreshes. How long we pause for is the BIG question. The worst that can happen is that we get our string of long awaited announcements and the market is in no mood to digest them. But digest them it will.... eventually,....leading to CVI being one of the first cabs off the rank when the green flag is waved for the next upward leg for the market.

Patience people, and congratulations to those who post with such passion and insightful commentary!

Regards to holders
Nev

---

[email protected]