Dear Jim,

The Queen of England does not look happy. Are we entering the perp walk phase of the derivative meltdown?

Ciga Ken

Queen baffled at delay in spotting credit crunch
November 6, 2008 – 8:41AM

Queen Elizabeth has been given an academic briefing on the origins of the credit crunch and wound up the "lesson" by asking why nobody had seen the crisis coming.

The 82-year-old monarch had the complexities of the current global financial crisis explained to her during the inauguration of a new building at the renowned London School of Economics (LSE).

The origins and effects of the crisis were explained to her by Professor Luis Garicano, director of research at the LSE’s management department, the Press Association reported.

Prof Garicano said afterwards: "The Queen asked me: ‘If these things were so large, how come everyone missed them? Why did nobody notice it’?"

When Garicano explained that at "every stage, someone was relying on somebody else and everyone thought they were doing the right thing", she commented: "Awful."

More…

Dear Ken,

The reason it will probably not happen is because you would have to arrest every international investment bank in the entire world, all their clients and half of both of their staff. After that the Federal Reserve would arrest past Chairmen followed by the Fed arresting itself.

The way the perp walk might happen is if someone really angry who has no clue how pervasive the OTC derivative scam is, like the Queen, demanded a criminal investigation by non-financial incorruptible criminal judges.

Who knows, it could happen.

Regards,
Jim

Dear Mr. Sinclair,

I decided to visit Bloomberg.com this morning to review the market news. Here is what I found. This appears very ugly for the US dollar and wildly bullish for gold.

CIGA Marc

•AIG Bailout Swells to $150 Billion as Insurer Reports Fourth Straight Loss
•U.S. Stock Futures Rise on China Stimulus Plan, G-20 Call for Lower Rates
•Fannie Mae Posts Record $29 Billion Quarterly Loss After Asset Writedowns
•Gendell, Scholes Are Losers as Hedge Funds Slide for Fifth Straight Month
•Believing in Estimates Means S&P 500 Rallies Record 20% Before 2008 Closes
•Circuit City Files for Bankruptcy Amid Competition From Best Buy, Wal-Mart
•Deutsche Post Will Eliminate 9,500 More Jobs in U.S., Scale Back DHL Unit
•Fed Refuses to Identify Recipients of $2 Trillion Emergency Loans to Banks
•Russia Probes Nuclear Submarine Accident in Pacific That Killed 20 People

Dear Marc,

Yes, this and much more is coming at the technical money flow that has created this bear market dollar rally.

Regards,
Jim