Parisian Family Office, CEO. Began Wall Street, 1982. Founded investment firm, CHIPPEWA PARTNERS, Native American Advisors. Active Trader. White Earth Chippewa Tribal member. Was NYSE/FINRA arb. Conservative, raised on Great Plains reservations. Pureblood, clot-shot free. In a world elevated on a dopamine binge, this is his take! Written from MT Ghost Ranch on the Yellowstone River, TN farm Pamelot or San Jose del Cabo, Mexico, CASA TULE'. Always been, will always be, an optimist.

Thursday, April 03, 2008

Soros on swaps...........

George Soros is a smart guy and my library contains the majority of his writings. Although we differ dramatically in political leanings and net worth (by billions) I have great respect for his market intelligence. Although his firm was credited with making a billion dollars in one day on a bet against the English pound, the trade was profitable only because of the complex currency play with the German mark. That trade was a trade with massive leverage, not a chance foray into the realm of high finance for the average trader.

I agree totally with his current analysis of the counter-party risk in derivative swaps.

There are some huge firms that are behind the eight ball in their clearing operations that will be hit so hard Congress won't have a clue where to start when it unwinds.

Just wait and watch. It's about as unregulated as Panama City Beach on Spring Break.

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