I played a casino once using a thing called The Reverse Labouchere. Basically, you bet both sides of an even odds-paying roll or spin or throw in ascending and descending units of One. For example: five dollars on Black, five dollars on Red. Black wins, you bet six dollars on Black, four on Red. And so on as the game proceeds. Get it?
You can go on for ages without doing any dough unless Zero comes up lots of times. If you get a run of one colour or the other (going on the Red/Black example) you can pretty much clean up. Anyway, the House noticed what was going on and changed the rules and you have never been able to bet in units of One on an even money outcome ever since.
The moral of this story is that the House doesn't ever play fair and it changes the rules when it starts to lose and knows it is also going to continue to lose.
Same way as New York and Chicago have upped the margin sizes for futures contracts on Precious Metals just now. I see a lot of people talking about the end of the PM bull market. About a 'crash' in Precious Metals... Okay. Maybe. But then why would they feel they had to change the usual rules? Time will tell I guess but it seems mighty strange to me. Meanwhile, sure, all the margin longs are liquidating. Doesn't mean there's a crash though. Means the margin longs are having to liquidate.
Well, you can't believe in the House. You can't believe in the government. You can't believe in Bernanke. You can't believe in Geithner. And they're trying hard to get you not to believe in gold or silver.
I still believe in a lot of things: Louboutins for smart women, A flame-grilled steak, Fast Eddie Felson... A good red wine. I believe a Philly Lawyer can talk a river run straight. And that's going uphill against the downflow of the prevailing current.
Calvin J. Bear
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