thank you, w/ U$D 550, I was looking for Max. downside Risk, upon 2x-checking, if we got there, it’d be a whole different kettle of Fish– from what’s making sense, now..

U$D 700 does look like a much better # for support, in the current context.

if AU breaks 700, 550 looks like next support.

needs to be attached to the model..
~~

SB,

I’ve been thinking that Au could see a pull-back to U$D 550, do you have an idea?

“But even as Financial Products experimented, Savage said, he continued to stress the need to minimize risk. ‘That was one of the things that really marked this company, was the rigor with which it looked at the business of trading. . . . There was an academic rigor to it that very few companies match,’ he said.”

What these con men did was to invent a pseudo-mathematics and a pseudo-science to make the risk appear less than what it really was. That was the only way they could hoodwink people into putting their money into things that were inherently risky, obfuscating the risk with their bogus mathematics and bogus science.

I agree completely. But to complete the picture I would also recommend:

Nassim Nicholas Taleb–”The Black Swan”

Kevin Phillips–”Wealth and Democracy”

Jacob S. Hacker–”The Great Risk Shift”

None of this happened purely by accident. It was a huge fraud perpetrated on the American people and on the world, and the outcome was all but predictable. Mandelbrot is a wonderful read, but he is blind to, or chooses to ignore, the greed and perfidy that lurks in the heart of man.

Wasn’t this one of the tag lines of Enron, also?