umm....why would you assume I hadn't?
In point of fact, I did predict this scenario, back in 2002, and rearranged my bets accordingly. I've got no complaints on the return.
You used the word 'predict', but that wasn't what I was doing. I was referring to mortgage-bond related failures that have ALREADY occurred, and in large numbers.
A bond-trader friend of mine keeps what he calls "The Implodometer"...
It tracks failures of mortgage-bond related firms; and such bonds have been the underlying funding-mechanism for virtually all the so-called economic 'growth' of the past 10 years.
Anyway, the Implodometer passed 100 in Q4 2007.
That is 100 major mortgage-related firms failing in just 360 days.
That's up from -three- in 2006. Think about it....
Also, check out the -details- underlying this week's news about Thornburg and Carlyle that I referred to. Carlyle couldn't sell -agency- paper. If you know anything about the bond-biz, that fact whacks you right between the eyes.
I wasn't just blowing smoke. This is real stuff...and happening right now. Being in the precious-metals business, I'm exposed to this information every day.
You won't find reality on CNN....or any other mainstream-media. You have to dig deeper...into the industry press and insider-websites. As a starting-point for insider-info, try minyanville.com....people there post links to other good info-sources too.
In regards to the nand-flash....I did not cite that as a hard-drive specific or replacement relationship at all. I cited it as a single example of very recent and very savage shifts in wholesale prices and supply/demand in the PC/consumer-elex biz. As I said, it was just one example of an industry wide -trend- in supply/demand and pricing. That was my only point.
Again, the Carlyle failure last night that I mentioned earlier is notable in that it involved -agency paper-. This whole mess is NOT just a 'sub-prime' mess; as the mainstream media keeps trumpeting. It's more like a tsunami that's engulfing -every- type of financial-instrument.
If you have any significant coin in any accounts or funds (including so-called 'money market' funds, most of which in reality keep the money in at-risk mortgage-backed paper) which are not PURELY t-bill based; you'd be well-advised to move to t-bill-only funds immediately.
Better to give up a half-percent of interest for a year, while seeing how things shake out....than to lose it all...