There is no doubt that if you had a week like mine you really needed this last weekend. What an emotional roller-coaster. I spent a lot of time catching up on sleep and adjusting to the 8 hour time difference here at my home in Estonia, while trying to trade and work back in NY, it’s never easy. All and all though I already feel healthier, food is better, don’t eat as much anyway, and more exercise since we walk a lot here. Alex is having a good time too as her loving grandparents feel she can do no wrong (wait until she is here a few weeks).

Anyway, it should be another interesting week in the markets and it most certainly won’t be dull. Soybeans are already taking off, S&P is still holding up strong, but for how long is anyone’s guess and at the same time silver is rallying. Hopefully those who decided to continue to hold onto their December 2008 gold will grab profits and roll into 2009 silver like we have in GCA.

I guess they have some really deep master plan over there at RTA, first thing they should do is get someone who knows how to trade commodities, that’s step one.

Anyway, let’s look at some news tidbits that are impacting some of our positions. I am off to Tallinn (the capital of Estonia) today with Katrin and then I leave for Miilan where she will join me at the end of the week before we go to Venice for along overdue vacation. Now let’s look at the news.

he shadow banking system is unravelling

By Nouriel Roubini

Published: September 21 2008 17:57 | Last updated: September 21 2008 17:57

Last week saw the demise of the shadow banking system that has been created over the past 20 years. Because of a greater regulation of banks, most financial intermediation in the past two decades has grown within this shadow system whose members are broker-dealers, hedge funds, private equity groups, structured investment vehicles and conduits, money market funds and non-bank mortgage lenders.

Like banks, most members of this system borrow very short-term and in liquid ways, are more highly leveraged than banks (the exception being money market funds) and lend and invest into more illiquid and long-term instruments. Like banks, they carry the risk that an otherwise solvent but liquid institution may be subject to a self­fulfilling and destructive run on its liquid liabilities.

But unlike banks, which are sheltered from the risk of a run – via deposit insurance and central banks’ lender-of-last-resort liquidity – most members of the shadow system did not have access to these firewalls that prevent runs.

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The North Woods’ Very Spry Centenarian—Producing The ‘Quality-Of-Life Metal’

By Dick Phelps
17 Sep 2008 at 05:06 PM GMT-04:00

Silver is now well beyond its historic photographic market; it’s a metal driven by enhanced consumer lifestyles and rising standards of living. One company well situated to capitalize on it is primary silver-producer Hecla Mining Co. RI first heard directly from its CEO, Phil Baker, at the Denver Gold Forum last week.

COEUR d’ALENE, Idaho (ResourceInvestor.com) — After the Denver Gold Forum meeting the author then went up to Hecla’s Lucky Friday mine, in the famous Coeur d’Alene Mining District (a.k.a. Silver Valley) of Idaho where Baker gave RI a comprehensive tour. He capped RI’s exclusive interview saying, “Due to its unique characteristics, silver is growing more rapidly than other metals; I’d rather be in silver than any other metal.”

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Weather still threatens soybean crop, quality

9/19/2008, 1:26 PM CDT

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When the USDA recently lowered its soybean production estimate one percent to 2.93 billion bushels on 40 bushels per acre yield, Iowa State University (ISU) Soybean Extension Agronomist Palle Pedersen responded that those figures seem like a more accurate look at this year’s soybean crop. Unfortunately, he says, there are concerns that figure is still too high.

Pedersen says this year’s soybean crop will depend on several variables over the next several weeks, including weather. “For that reason we are monitoring the seven- and 10-day forecasts very carefully right now,” he says in an Iowa Soybean Association report.

“Under certain conditions, the crop could still improve,” Pedersen says. “Sunshine and warm temperatures will help soybeans mature. If we don’t get an early frost, we may be in good shape. But if we get an early or average frost, that will cost bushels, no doubt about it.”

Ok my next post will be from Milan, have a great trading week! Stay Safe, Kevin

p.s I got some ad from some publisher this weekend about how to make under $10 or something, probably pretty accurate, remember you get what you pay for. Take care