U.S STOCKS ARE DOWN FOR 3 VERY GOOD REASONS
1. Refco Capital Markets, which I believe to be one of the biggest over-the-counter derivatives firms, has serious problems. This company is a non-regulated arm of Refco, Inc., which handles over-the-counter transactions (derivatives), foreign exchange, fixed income trading and stock lending. In other words, they are active as a party to many derivative contracts. The Fed and every other central bank must act quickly to bail out this mess before it spreads. In my opinion, Jim Sinclair knows as much about this problem as anyone, and is the most truthful . . .
Continue Reading: U.S. STOCKS ARE UGLY NOW, BUT MAY BE PRETTY IN 2006
