Hedge Fund Blows Up, Banks Get Whacked

Archegos Capital Management Gets Margin Calls, Defaults

I sense an opportunity of some kind here as a hedge fund blows up and exposed banks get hammered. Now, if I can only figure out what that opportunity is.

Banks warn of ‘significant losses’ as they exit positions with large U.S. hedge fund

It’ll take some time to settle in, but it feels like buying the Pigs * would be too easy, and that would be dependent upon a still steepening yield curve with rising long-term yields.

Could it be the first sign of coming liquidations across asset markets and a failure of the ongoing inflationary operation? That would eventually be gold-positive.

Or could it instigate new and more strenuous inflate-or-die behavior from the Fed and government?

Like I said, it’s going to take some figuring out and it’s probably best to let the situation breathe a little. But something’s in motion. The article refers to “a pothole in the road” but they are not going to come out with a “3 Alarm Fire!” call. They never do at first.

* Since some don’t always know the jargon and lingo, Pigs = Banks.

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