From: Jeffrey Epstein <jeevacation®gmail.com>
To: Laurie Cameron >
Subject: Re: update
Date: Wed, 09 Oct 2013 07:58:28 +0000
the losses are bad, take them.
On Wed, Oct 9, 2013 at 4:48 AM, Laurie Cameron < > wrote:
Hi Jeffrey,
It has already been a long week in a long month and I wanted to communicate about the
position. It is down around $600k right now. About $173k is realized, the rest is
unrealized. The bulk of the unrealized losses are in and AUD option, a NZD option and a
GBP option, each approx $5-8 m notional.
I don't want to do anything without your agreement, since we are living in an
unprecedented insanity which could have dire consequences for U.S. credibility and
creditworthiness, but even if there is no debt default now, eight days of a partial govt
shutdown will have consequences on the economy in months to come. I think that
commercial real estate and the bond market will be especially hard hit.
Originally I had two major premises supporting my higher USD/lower AUD, NZD, CAD
and JPY positions:
0 major commodity prices would fall in reaction to slowing global growth and oil
importers would no longer need a strong currency to keep imported USD denominated
oil prices down.
2) the US treasury dept would work to keep the USD strong in order to attract capital a
market with falling bond prices.
It is possible that new economic stagnation could push oil prices down and the USD up.
It is possible that the US Treasury might try to attract capital by trying to prop up the
USD. I don't want to keep these positions at a time like this without your approval,
however. I was planning to reduce positions further tomorrow, but this will inevitably
lock in more losses. I was planning on still keeping some small AUD and NZD positions,
but only if you feel comfortable keeping them at this time.
I am so grateful for the opportunity you ve given me. I have been pricing the portfolio
many times each day in hopes of finding a means of locking in more profit. I realize that I
am opening and closing delta hedges just to try to make money because I hate being
down as I am. I now think that this is too dangerous a strategy and I want to take down
alot of the risk, which will involve locking in losses. No one hates to do it more than I do,
but I don't want to put you at more risk in case the US does default.
All thought appreciated. Thank you again.
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