Replies to post #7194 on Black Dragon Resource Companies Inc (BDGR)

[localoil]

Still have the puts but have been sweating a bit : )

You may enjoy this...

http://ml-implode.com/

Bottom line for deep rights is that if you have 'em thats a good thing. The whole area will be developed IMO.

[localoil]

Mars,

For what it's worth, here are my thoughts on how the next couple of months begin to unfold.

Crude continues to rise, probably significant spike at the end of October. So I own 2K+ of GSG, about 70% in crude, the balance in other commodities. I have a good bit of XLE, so am overweight energy.

Energy and food prices will bleed over more and more heavily into the core inflation numbers so the Fed will tighten which will cause ARMS to become unaffordable as those mortgages reset at higher rates. Homeowners won't be able to refinance in many cases since their loan amounts will exceed the new, lower appraised value of their homes.

Meanwhile, funds that are allowed to hold only investment grade paper will see their CDO's downgraded and they will be forced to sell - seeing their paper marked to market at about 70% of face value.

Just my guess, but I'm an optimist!