Today we are told that another of the world's biggest hedge funds has crashed and burned. This time it's Amaranth Advisors of Greenwich, Conn.

When a hedge fund suddenly loses about $2.5 billion or close to 50 pct of the fund's asset value, everybody panics. When you are trying to keep the ship afloat, everything goes overboard, including the gold.

You've heard of the drowned man who was trying to swim carrying two gold bars? Enough said.

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When hiring students at Caltech, Amaranth pitched themselves as follows:

Company Description: Amaranth, located just out side of New York in Greenwich, Connecticut with offices in Toronto, Canada, London, England and Singapore is an investment management firm with over 6 billion dollars in assets under management. Amaranth is widely recognized as a leader in alternative investment strategies. In 2004, Amaranth was nominated for the Alternative Investment News “Hedge Fund Leader Award” and was ranked one of the top 50 hedge funds in size by Institutional Investor. We specialize in a broad spectrum of alternative investments and trading strategies, through a multi-strategy investment fund and fund dedicated to long-short equities.

HIRING INFORMATION:

Majors Recruited: Applied and Computational Mathematics, Applied Physics, Business Economics and Management, Computer Science, Economics, Engineering and Applied Sciences, Engineering Science, Mathematics, Physics

Degree Level: Doctorate, Bachelors Degree, MBA, Masters Degree

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What did I write in the WIR this weekend?

"I wonder if T. Boone Pickens was trading against his hype, or truly, has his 5 billion dollar hedge fund become 4 billion this month?

Big Money has definitely left Big Oil.

Question of the day...Has T. Boone gone with the flow, or just gone on vacation?

Again I ask about the hedge funds (that are) long oil and inadequately hedged, will there be failures?"

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Here's the problem I have with this situation " actually three issues:

• When the Humungous Bank & Broker players are making billions on trading futures, who's losing it on the other side?
• When HB&B sees the minute-to-minute risk positions of their clients, and then they look at their own exposure, how many billions of potential losses do they avoid by insider selling, with no notice to all clients?
• Why do you think that I have been writing articles here and in Wall Street Journal about the need for hedge fund regulation, and why HB&B doesn't want you to have it.

I continue to ask, when does the nonsense stop?

Do we have to wait until these jerks who control HB&B and their lackies at the Fed and the Treasury totally destroy our capital market?

Of course it's "our" market. The owners and managers of capital are being ripped off " the system is broke and the situation is just going to worsen until the entire system implodes.

In fact, there are enough derivatives outstanding on each side of the market that if unwound at once would create losses so great that the world would no longer have a working capital market system.

I started this campaign two and a half years ago. I don't know we have another two and a half years left before the system collapses.

I will continue to hold gold and other commodities because, when the system eventually does collapse, without it you will be dirt poor.

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These charts and tables show gold traders what happened to the gold market when the some of the world's largest hedge funds were walking the plank (unbeknownst to the Little People of course).

But look at the price of the forward months for Natural Gas. That tells you where the commodity prices are headed. Back up as soon as the hedge books are squared on Wall Street.

I spent a lot of time pleading with gold traders this weekend to not throw away your positions. I told you the problem was in the derivatives market. Now you know.

I've been around long enough to know the modus operandi of the crooks at HB&B. I used to be one of them, you know.

Hold your gold; it's got value. HB&B and the Administration? " they got stories and paper.

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