Quantitative Easing Financial Markets Train Smash Coming
By: Brian Bloom
Dec 12, 2010
In this analyst’s view, it is only a matter of time before the folly of Quantitative Easing becomes transparent to everyone. That time may be closer than most people think.
Here is a quote from an article entitled “Investors Hold Biggest Commodity Positions On Record; Viral Nonsense About Silver” written by Mike Shedlock.
“Hedge funds, pension funds and mutual funds dramatically ramped up their holdings in everything from oil and natural gas to silver, corn and wheat this year. In many cases, the number of contracts held for individual commodities now far exceeds the amount outstanding in mid-2008, the last time commodity markets were soaring to records and debate raged about whether excessive speculation was driving up prices”
In context of the three charts below, the commodities markets themselves – and the derivatives markets which hang off them; and the financial markets which will certainly be impacted by rising counterparty risk – may well be headed for a train smash