I explained that investing in bullion ("long") was a good "proxy" for shorting U.S. Treasuries, and concluded that this proxy was a safer, superior substitute for that short-position. In this instalment, I will apply that analysis to other U.S. asset-classes: the financial sector, and the U.S. dollar, itself.
When Wall Street's multi-trillion dollar Ponzi-schemes imploded (based upon the U.S. housing-bubble, which they also created), it was common knowledge that the entire U.S. financial sector was leveraged by an average of 30:1. It is a matter of simple arithmetic to observe that with such extreme leverage, it only takes a loss of a little over 3% on the underlying assets to take all "bets" at 30:1 leverage to zero.
Given that most of Wall Street's leverage was based upon the U.S. housing market, and given that the U.S. housing market plunged by roughly 30% (in its first collapse), you don't have to be a "mathematician" to figure out that this was ten times the decline necessary to take the entire, U.S. financial sector to zero....read on