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Kevin McElroy

 
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  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    Hysteria, when it's clear that they haven't even read the article they're commenting on, I have to assume that they ARE children, in mentality if not age.
    Aug 10, 2011. 09:26 AM | Likes Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    My personal preferences about honest money, honest leaders, and entirely voluntary relationships between citizens and government have almost nothing to do with what will happen to the US government and the dollar. No country in history has been able to debase its currency and then ascend in standard of living. That myth has been imploded many, many times.

    The government will either fix itself, or it will be fixed by the markets. The markets don't need me to believe in or advocate for them. The immutable laws of scarcity and production CAN NOT be ignored in favor of government fiat. At least not for long. And the consequences of such folly are some of the deepest ruts in the road. They've been papered over by do-gooders, world-changers and slick-talking bankers, politicians and con-men, but as the Europeans are finding out, they're still there.
    Aug 9, 2011. 10:05 AM | Likes Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    My point is that they're wrong because they didn't downgrade this huge bankrupt government further, a long time ago.

    If any publicly traded company was this broke, and started floating new shares and bonds on a monthly basis to make interest payments, you can bet that all three of these rating agencies would be sounding the alarm.

    And we wouldn't be looking at a one-step ratings downgrade. It would be several steps.

    If a fire broke out and your house's smoke alarms were as dysfunctional as Moody's, Fitch and S&P, you'd be dead before they started beeping.
    Aug 8, 2011. 11:44 PM | Likes Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    Thanks for almost paying attention. That's a quote from Ben Bernanke, and it's also a hint that he only knows how to print money. That's the only tool he's ever used. It's the only one he believes can work. And it's the only one he will use.

    Of course it's going to destroy the standard of living. But the actual act of sending ones and zeroes to the Treasury is free. It's so easy that they'll never stop until they're stopped.
    Aug 8, 2011. 11:34 PM | 1 Like Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    Liberals? How, exactly, did you decide that from my post, which has nothing to do with politics whatsoever?

    Stop root-root-rooting for the home team and pay attention to the math that's about to hit you in between the eyes. Democrats and Republicans couldn't empty a boot if the directions were printed on the sole. Both of these political parties have been robbing you blind - and you're so lazy you think the answer is to casually toss out half-witted insults online. Wake up and then grow up.

    The US is broke. The fact that the US isn't close to junk status according to any of them tells you everything you need to know about these ratings agencies.

    They're useless. If you wait for their judgment on Treasuries or any other investment, you're going to lose lots of money.
    Aug 8, 2011. 11:31 PM | 1 Like Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    Wow, the reading comprehension on SA is crashing harder than the market did today. When did I say the US deserves an AAA rating?

    Did you read my article at all?
    Aug 8, 2011. 11:24 PM | 1 Like Like |Link to Comment
  • Why S&P's U.S. Downgrade Is Dead Wrong [View article]
    I'm saying that S&P has been a useless rating agency for years, so looking to what they say about anything is completely pointless.
    Aug 8, 2011. 11:22 PM | 3 Likes Like |Link to Comment
  • A Commodity Asset Allocation Strategy [View article]
    Agreed. Water will likely be a compelling investment - but I worry about the likelihood of water assets being nationalized when/if prices get "too high" for the masses to tolerate.
    Aug 2, 2011. 03:18 PM | Likes Like |Link to Comment
  • The Myth of Commodities Investment [View article]
    I don't understand, and maybe I'm missing something about the timeline on this new asset correlation theory - but haven't commodities and stocks been inversely correlated for about the past 12 years?

    Stocks are about flat, and any commodity index is up big.

    It sounds like Tang and Xiong were seeking to debunk the continuation of the inverse correlation trend, pictured most commonly with this chart: www.japaninc.com/files...

    But as far as I can tell, commodities have been trouncing the broad market. What am I missing?
    Jul 14, 2011. 07:49 PM | 2 Likes Like |Link to Comment
  • The Commodity Assumption [View article]
    Nice cautionary tale (which are always important) but it's my understanding that while demand is assumed to grow (as you point out), many people look at the likelihood of continued currency devaluation as a good enough reason to get out of dollars or euros or yen and to hitch your wagon to assets that can't be deflated.

    Thoughts?
    Jul 14, 2011. 07:34 PM | Likes Like |Link to Comment
  • Natural Gas: Cheapest Asset Won't Stay That Way for Long [View article]
    True, it is an advertisement. I work for a financial research firm, and I write this letter for free - to anyone who wants to read it. But I don't do it out of the kindness of my heart - I do it as a way to introduce people to the kinds of ideas and research that we offer in our paid research. In that regard, everything I write is an advertisement.

    I'd say that 99% of the stuff you read on SA is an advertisement for someone selling something. Keeping the overt links out just makes it seem a little less "salesy" I suppose.
    Jun 19, 2011. 10:59 PM | Likes Like |Link to Comment
  • Natural Gas: Cheapest Asset Won't Stay That Way for Long [View article]
    Recalibrate your sarcasm detector.
    Jun 17, 2011. 11:04 AM | 2 Likes Like |Link to Comment
  • Monsanto: Buy This Hated Agriculture Stock [View article]
    have a corporate responsibility report doesn't make a firm responsible. It's a PR stunt, and it apparently tricks some gullible people into thinking Monsanto is the warm and fuzzy savior of the world.
    Jun 16, 2011. 06:33 PM | 1 Like Like |Link to Comment
  • Inflationary Policy: Who Benefits? [View article]
    While you're technically correct that the FDIC doesn't directly backstop banks, it does free them up from pursuing better banking practices. And since we're talking about corporations, the individual "owners" of the bank don't take a personal haircut. They still get to keep all of the bonuses and houses, cars, yachts they amassed while running the bank into the ground.

    And while you're technically correct, you're effectively incorrect. The fact that the FDIC has a hand in banks at all has given the Feds broad tacit powers to backstop banks. And of course it's not just the FDIC. There's bleed over from a variety of alphabet soup cabinet agencies - all of which will continue to be used to prop up the financial system at the expense of middle class savers.
    Jun 12, 2011. 10:18 PM | Likes Like |Link to Comment
  • Bernanke Surprises Markets With the Truth [View article]
    I don't think it's a willingness problem, as both the author and Bernanke assert.

    If I don't have the willingness to spend money that does not exist (IE - go into debt) it's not my lack of will that's to blame.

    Bernanke will find out sooner or later that his computers and his theses can do many things, but only up until the point that the cupboard is bare. People will not consume crap from China when they are having a harder time affording food, clothes, heat and transportation.

    Why are they having a harder time affording those things? Bernanke refuses to look in the mirror, but that's where the answer lies.
    Jun 8, 2011. 10:52 AM | 3 Likes Like |Link to Comment
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