The good times must be back.
Porsche SE, the luxury sports car maker, announced this morning that its profit went up sevenfold in its first fiscal quarter ended October 31, 2010. Porsche reported a profit of 526 million dollars in the quarter on a 63% increase in car deliveries. (Interestingly, one-third of Porsche’s car deliveries in its last quarter were made in its home-base, Germany.)
Latest figures from the Bank of International Settlements: $8.3 trillion of real money is controlling $313 trillion in derivatives. That's 38 to 1 leverage. If there's a fire-sale in hedge funds or derivatives, there's nothing the Plunge Protection Team or the Federal Reserve will be able to do to stop a meltdown. The market will crash leaving nothing behind.