Deep gold.

Kirby:

"Nowadays – if a bond market participant dares to accumulate a position that is perhaps FUNDAMENTALLY CORRECT [by shorting a pile of, say, 10 yr. bonds] – he/she is guaranteed that J.P. Morgan [through machinations in their 58 TRILLION NOTIONAL DERIVATIVES BOOK] or the Fed themselves will AMBUSH them with such a “torrent of liquidity” that they may well be “fundamentally correct” but out of a job too."

"And Bloomberg tells us,

“…Amaranth borrowed about $4.50 for every dollar of its own equity at stake, according to documents it distributed to investors……”
But does anyone stop to wonder “who” lent the money in the first place and why so little media attention is focused on this angle of this sordid story - identifying the enablers? We’re well aware that J.P. Morgan et al was quick to swoop in for first pecks at the carcass – purchasing the “wrong longs” for pennies on the dollar to “cover” their coincidental – or perhaps not – massive short position in Nat Gas – who lent all the money in the first place?"