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Alberto Savrieno

 
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  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    I believe precious metals will rise with the same force that bonds get crushed/interest rates rise. The same exact thing we saw in the late 70's through January 21 1980. Gold and interest rates skyrocketed together. It's going to happen again, but this time even more strongly, with a much, much bigger debt burden.
    Mar 8, 2014. 03:38 PM | 4 Likes Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    The 30 year bull market is over, but the crushing has barely begun. It's going to get really serious when interest payments on the debt become unmanageable.
    Mar 8, 2014. 03:35 PM | 4 Likes Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    banks are not loaning out the excess reserves because at current interest rates, the potential reward does not outweigh the risk of loan default.
    Mar 9, 2014. 04:14 AM | 3 Likes Like |Link to Comment
  • The Bottom Is In For Gold And Mining Stocks [View article]
    No no, not at all. The bottom is in. With the Yen crashing it is the signal of the beginning of a global currency crisis. Recent weakness is only traders looking for quick profits in stocks and liquidating gold positions. That will reverse quite soon if it hasn't already.
    Apr 6, 2013. 01:44 PM | 3 Likes Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    Eagle - not every QE dollar has ended up in excess. Some have been loaned out. It's just that the rate of QE has far exceeded the rate at which the excess funds are loaned out, so they keep piling higher. You can see from the graph at the beginning of the article that when the Fed stops printing temporarily, the excess reserves begin to drop. So some QE has entered the system, and this is where stock gains have come from.
    Mar 8, 2014. 03:41 PM | 2 Likes Like |Link to Comment
  • Athersys Has Some Promise, But Controversy And Doubt Remain [View article]
    I agree that small positions should be taken in stem cell stocks, nothing more than 2 to 3%. Athersys is not necessarily a bad choice, but there are other ones that are more promising.
    May 3, 2013. 07:47 AM | 2 Likes Like |Link to Comment
  • The Bottom Is In For Gold And Mining Stocks [View article]
    Could be. Even so, all the other signs point to a long term bottom. Watch the Yen and the pound. If they continue to plummet past support, the entire character of the PM sector will change as a currency crisis sets in.
    Mar 7, 2013. 04:01 AM | 2 Likes Like |Link to Comment
  • Not Enough Cash For Sunshine Heart [View article]
    Seeking Alpha is a great forum where people can express their opinions openly and debate the issues. I found it very interesting that many of the comments above attacked me personally while not addressing the premise of the article.

    For your edification, the stock lost over 20% of its value prior to the article's publication.


    Oct 22, 2012. 10:37 AM | 2 Likes Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    Sounds like you've taken way too many macroeconomics courses.
    Mar 9, 2014. 04:20 AM | 1 Like Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    All the Fed does is print money, expand the money supply. That's all. That is the purpose of its existence. I can't say much else in response. Everything else is a tool to that end.
    Mar 9, 2014. 04:18 AM | 1 Like Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    There's nothing "wrong" with it. It will, however, bankrupt the federal government. Interest on the debt is too high as it is. For every percent on the 10 year, that interest goes up about $100 billion dollars a year.
    Mar 9, 2014. 04:11 AM | 1 Like Like |Link to Comment
  • Excess Reserves: The Elephant In The Room The Fed Doesn't Want To Talk About [View article]
    Hey Larry -

    The Fed doesn't create excess reserves. The Fed creates deposits that it puts in its member banks in exchange for bonds. The deposits come out of nothing. What banks do with these deposits is up to them. They can either loan them out and thus they become part of the money supply, or they can keep them locked up at the Fed in excess reserves, thus they become part of the excess reserves.

    Excess reserves are simply deposits that banks are not required to have as reserve.

    So in short, Fed creates money, buys bonds with it. That money is put in a bank as deposits, which are then put back at the Fed as excess reserves.
    Mar 8, 2014. 03:48 PM | 1 Like Like |Link to Comment
  • Market Running On Fumes, Prepare Your Exit Strategy [View article]
    That's a fun question! What would I do? I would name myself head of the Federal Reserve, freeze the presses forever, dismantle acts of congress that interfere heavily with the economy, brace the country for a tremendous but mercifully quick depression and not bail anyone out, let the economy restructure itself freely, and let human ingenuity create wealth.

    Wealth creation is promoted by economic freedom, not by government central planning. I recommend the book Amerrica's Great Depression by Rothbard to understand the macro level of what's going on here.
    Nov 17, 2013. 02:50 PM | 1 Like Like |Link to Comment
  • Market Running On Fumes, Prepare Your Exit Strategy [View article]
    Thanks for replying Jeb, looks correct. These drops are negligible in and of themselves, but if they continue it will be meaningful. It looks like M2 may be stabilizing for now, but we're still dangerously close to a precipice.
    Jun 4, 2013. 01:56 PM | 1 Like Like |Link to Comment
  • Market Running On Fumes, Prepare Your Exit Strategy [View article]
    Money does not seasonally adjust. "Seasonally adjusted money" is a nonsense number. Money is money, however much is out there is however much is out there. Use the non seasonally adjusted 13-week average, first and last number on each sheet. Using a shorter average will give you too many bumps and false positives.
    May 20, 2013. 03:51 PM | 1 Like Like |Link to Comment
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