wednesday wipeout, page-46

Takuan: Response to your points.

re: Goldman Sachs. No we did not expect such a high number. The consensus was 3.45 which everyone thought was an easy beat. Meredith Whitney called 4.75 which was to the upper end. To come in above the top end is awesome in any market. Bull or Bear. I have one question though....seeing that Goldman is now a holding company, i.e. a bank....shouldn't that mean the are not allowed to speculate and take risks with depositors funds? Or are the profits seperate?

re: Intel. Yes I agree. It's a hard bar to beat, but remember Intel is in the semi conductor space, i.e. microprocessor chips. The likes of IBM and Siemens will be viewed seperately. Meanwhile, expect Dax to be strong on chips and semi-conductors feeding off Intel.

re: AUD and China. I agree. Unfortunately, 99% of the investment community thinks differently. Perhaps it may take some sort of debacle to change mentality. Or maybe it is you and me who are delusional.

re: USD and deficit. Again, I agree. Not to mention on October 2nd, California is due to pay out its IOUs, which obviously unless the govt prints more money, it can't.

re: NCM. I actually find that anyone who suggests prop desks, and institutional guys "play around" should extrapolate further, as in define what u mean by "play around" NCM and LGL do move in preemption with the gold price, but in this current environment its not hard to see why. I mean, XJO is on fire, Dow futures are up, which means commodities should be strong, which means USD should be weak, which means gold should go up, but I cant be bothered buying gold bullion, so I'll just buy NCM/LGL.