Goldtent TA Paradise

My bet is we have

1. Spock says:

   June 25, 2020 - 8:58 am at 8:58 am

   On top of these toxic CLOs that the banks are holding, we also have the oil fracking sector, which is all debt financed and under water. The $BKX Banking Index chart is terrible.

2. silverboom says:

   June 25, 2020 - 9:12 am at 9:12 am

   Oh, we are not counting the $quadrillion++ of leveraged holdings on top of what is described in this article.

   Talk about a house of cards.

   Armageddon this time around…..

3. Patrick says:

   June 25, 2020 - 9:12 am at 9:12 am

   Yep. Ticking time bomb. Some of my research says March 2020 was like July (I think) 2007… but with a 2008 GCF type VIX. The next time the vix spikes..
   Could be well double all time highs. Scary feelings incoming.

4. Silverhawk says:

   June 25, 2020 - 10:05 am at 10:05 am

   What happens when/if this collapse spill over into the mining or royalties sectors?

   • JSKauai says:

     June 25, 2020 - 10:12 am at 10:12 am

     Then buy the dip

     • Silverhawk says:

       June 25, 2020 - 10:22 am at 10:22 am

       The collapse of the banking sector would be a dip the systems would not recover from, IMO. (They want a global reset) I think the point is go with physical or CEF type instruments

5. pedro_deleon says:

   June 25, 2020 - 10:36 am at 10:36 am

   Article is cautious, seeing this as a possibility.
   But in notes to F&F in late Feb, I indicated at the time that the Wall St reaction (to covid) was just the beginning, that it would run through Main St, and that eventually we would get to this problem with banking sector insolvency.

   In my LT gold EW outlook, posted here 5 years ago, the behavioral patterns pointed in this direction even back then. So … looking forward … kill off banks, you kill off future credit, and then nothing is off the table at that point. (I.e., even gold <$1000) That looks increasingly probable to me. I'm just waiting for confirmations in the math that gets this rolling.