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Kirk Lindstrom

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  • The Only 2 Charts You Need To Understand The S&P 500 [View article]
    Lets say you own a successful dental office with your brother-in-law. It has a steady stream of customers paying big dollars for new crowns made that day using expensive capital equipment. After you make the loan payments on the capital equipment to make crowns you have cash flow to pay nice dividends (salaries) to yourself and your brother-in-law. Clearly it would make sense to get a loan from the bank to buy out your brother-in-law's share as long as the payments to the bank are less than the salary you'd pay your brother-in-law from the business.

    That is a no brainer. I don't see it as any different than Intel buying back shares that pay a dividend higher than the cost to service the loan. The big difference is they buy it from thousands of shareholders rather than a brother-in-law and they buy capital equipment to make chips rather than new teeth.
    Dec 7, 2014. 12:32 PM | 2 Likes Like |Link to Comment
  • SPY Sets Another Record High While ECRI's WLI Growth Fell To A 2.3-Year Low [View article]
    I WISH the central banks listened to me! LOL

    "you got the Central banks"

    Seriously, I wonder how much of the slowdown is savers saving MORE now that we worry we need 2 to 5 times more money on the fixed income side of our portfolios to guarantee the same SAFE income stream we could get 10 years ago with CDs and US Treasuries?

    I've done EXCEPTIONALLY well these past years but it feels like it is nowhere enough as $1M in FDIC accounts used to give $40K to $60K, depending on how you laddered it while now you are lucky to get $15K.... Best CD Rate Survey
    Nov 11, 2014. 12:50 PM | Likes Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    Not sure what happened to my reply. I'm sorry but I don't watch videos, you can end up spending too much time on stuff that doesn't matter or watching some guy try to explain why the moon is made of green cheese just so some site can record longer visit times to charge advertisers more.

    Maybe you can give us a summary in a few words to save time?

    The obvious "correct" term is "increasing the money supply" but "printing money" is much more descriptive to the casual reader without a background in economics. What matters is the act of QE dilutes the value of money held by savers as it is a hidden tax on savers.
    Nov 2, 2014. 09:29 AM | Likes Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    I'm sorry but I don't have the time to watch videos friends recommend. Maybe you can give a condensed summary?

    My belief is if the point videos were trying to make were good enough, then you could convince me your way of looking at things was correct without asking me to tear apart another's argument.
    Nov 2, 2014. 09:22 AM | Likes Like |Link to Comment
  • Concerns Over Google's Earnings Results Are Way Overblown [View article]
    No mention of SBC? I've covered this in my newsletter but in short Google is similar to a popular nightclub that doesn't show the profits you expect. The profits go out the back door as cash tips for free drinks to the bar tenders who steal free pours from the nightclub owners. THE EARNINGS ARE GOING TO INSIDERS!

    SBC, Stock Based Compensation as percentage of net income was 45.9%

    For Q2 Y/Y comparison via Google's earnings release:

    SBC increased by $404M
    Net income fell by $160M

    Do you see a connection there?

    I bought Google for my newsletter portfolio and my own portfolio at $155 and $261 so I have HUGE gains... but now I'm considering selling as I nearly barf every time I read how much of shareholder income goes out the back door as SBC. Cisco did a lot of this in 1999 and look what happened to that "best of breed" company...
    Oct 22, 2014. 11:08 AM | 1 Like Like |Link to Comment
  • ECRI Says U.S. Inflation Pressure Elevated As Gold Falls Below $1,200 Per Oz. [View article]
    Inflation for a basket of goods will be different for people. The government number for CPI is an attempt to average it out, but it misses badly for many.

    Consider home ownership. If you own a home where I live (Los Altos in the SF Bay Area, California) and have a mortgage, your annual property tax gains are capped at 2% a year and we got a massive cut on interest rates to service the loan thus inflation has been very low since 2000. OTOH, if you were a renter these past 14 years, then your inflation is massive as rents and the price to buy a home such as mine have soared, roughly doubling, during the past 14+ years.
    Oct 9, 2014. 09:45 AM | Likes Like |Link to Comment
  • ECRI Says U.S. Inflation Pressure Elevated As Gold Falls Below $1,200 Per Oz. [View article]
    ECRI's mistake was underestimating the effect of artificially low interest rates and $85B a month QE at its peak on allowing the government to keep spending to boost GDP. I believe their indicators correctly predicted the weakness seen for the business cycle while correctly predicting inflation pressure would be low despite the actions of the Fed.
    Oct 9, 2014. 09:37 AM | Likes Like |Link to Comment
  • The Dow Economic Sentiment Index Supports A Higher Market [View article]
    The U.S. Bureau of Economic Analysis (BEA) has issued the following news release today:

    Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 4.6 percent in the second quarter of 2014, according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP decreased 2.1 percent.

    The full text of the release on BEA's Web site can be found at
    Sep 26, 2014. 09:57 AM | Likes Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    Dear 6228371,

    Who was your comment directed towards?

    Unless we throw out most of the Democrats and Republicans in US government and replace them with Libertarians, I don't see any chance of lowering the total debt, much less paying it down by running surpluses. Given the opportunity to buy votes from taxpayers and favors from big corporations after they leave office, I think we'll see new spending and/or tax cuts if we generate a regular budget surplus.

    As for your 10-year time frame, I think we'll be lucky if inflation runs faster than debt growth so the total debt as a percentage GDP falls but the total debt probably won't shrink.

    What do you expect to see?
    Sep 23, 2014. 10:49 AM | 1 Like Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    1.7% Full & Core CONSUMER PRICE INDEX – AUGUST 2014

    "The Consumer Price Index for All Urban Consumers (CPI-U) decreased
    0.2 percent in August on a seasonally adjusted basis, the U.S. Bureau
    of Labor Statistics reported today. Over the last 12 months, the all
    items index increased 1.7 percent before seasonal adjustment.

    The seasonally adjusted decline in the all items index was the first
    since April 2013. The indexes for food and shelter rose, but the
    increases were more than offset by declines in energy indexes,
    especially gasoline. The energy index fell 2.6 percent, with the
    gasoline index declining 4.1 percent and the indexes for natural gas
    and fuel oil also decreasing. "

    All Items CPI less food and energy, Core CPI, was also 1.7%

    "The all items index increased 1.7 percent over the last 12 months, a
    decline from the 2.0 percent figure for the 12 months ending July, and
    the smallest 12-month change since March. The index for all items less
    food and energy also rose 1.7 percent over the last 12 months. The food
    index has risen 2.7 percent over the span, while the energy index has
    increased 0.4 percent."
    Sep 17, 2014. 02:56 PM | Likes Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    I LOVE IT!

    So many forget that taxes are taking money from the productive to give to "other things" the takers deem more worthy of the money.

    It is fine as Bill Gates needed the threat of jail for me to not copy his $600 MS Office package in the early 1990s and resell it at flea markets... so clearly Gates needs to pay taxes to support the protection that made his wealth possible.

    I also have no problem paying taxes on gains above inflation for what I made on MSFT stock from buying back in 1993 when I figured Gates had a money printing machine. I'd be happy to see cap gains taxes eliminated in favor or taxing the gains that exceed the rate of inflation.

    But when we are punitive with taxes and force all the great jobs from HP, Apple, Intel, AMAT and now Tesla out of Taxifornia to no tax states and countries, you would think the parasites would learn that a SUCCESSFUL PARASITE DOES NOT KILL ITS HOST!
    Sep 5, 2014. 02:05 PM | Likes Like |Link to Comment
  • Despite The Dow Soaring To A Record High, The Dow/Gold Ratio Is Still Low On An Historical Basis [View article]
    Update on ECRI's ECRI's US-FIG released today.

    The US-FIG Flat with last month. Quote per Lakshman Achuthan: "With the USFIG almost at a six-year high, underlying inflation pressures have clearly risen since last fall."

    Remember, the US-FIG is a LEADING index. That it is rising despite gold and oil down to near the lows of their recent trading ranges, I believe this is significant.
    Sep 5, 2014. 01:28 PM | 1 Like Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    Thanks for the explanation. I hope you are wrong but with the people we send to Washington who are more interested in selling tax favors for campaign contributions, you may be right. A broken system of taxation full of loopholes for the very wealthy to buy in exchange for campaign contributions and board seats after the rulers leave office (Al Gore Apple stock and Robert Rubin Citibank job, for example) seems far too profitable for those in Washington to really try to fix.

    >>When it collapsed, due in part to bank-friendly policies that Rubin advocated, he made more than $100 million while others lost everything. “You have to view people in a fair light,” says Phil Angelides, co-chair of the Financial Crisis Inquiry Commission, who credits Rubin for much of the Clinton-era prosperity. “But on the other side of the ledger are key acts, such as the deregulation of derivatives, or stopping the Commodities Futures Trading Commission from regulating derivatives, that in the end weakened our financial system and exposed us to the risk of financial disaster.”

    After he stepped away from Treasury in 1999, Rubin moved to Citigroup (NYSE:C), and until 2009 he served as chairman of the executive committee and, briefly, chairman of the board of directors. On his watch, the federal government was forced to inject $45 billion of taxpayer money into the company and guarantee some $300 billion of illiquid assets.
    “Nobody on this planet represents more vividly the scam of the banking industry,” says Nassim Nicholas Taleb, author of The Black Swan. “He made $120 million from Citibank, which was technically insolvent. And now we, the taxpayers, are paying for it.”

    I won't be happy until he is in jail.
    Aug 31, 2014. 10:42 AM | Likes Like |Link to Comment
  • U.S. Debt At 102% Of GDP Hits Another Record... Is It Time To Buy Gold? [View article]
    "James, Not sure which crystal ball you're using but all you need to know is that the money printing will never end and when this realisation dawns on the market, that's when gold will ignite."

    Are you saying you don't believe the Fed will end QE? QE is money printing for sure while "artificially low interest rates" is market manipulation, not money printing.

    The Fed is already on record of saying they will continue to manipulate rates for a long time but most expect the money printing QE to end this year.

    Thanks for this "A bit like 'My First Remote Control Car': forward, neutral, reverse." Quite funny and true!
    Aug 30, 2014. 12:59 PM | Likes Like |Link to Comment
  • Why Intel Is A Great Buy [View article]
    Congratulations to all longs!

    Today Intel is $34.65

    I recently took some profits at $35.10 in my trading IRA which is nearly a double when you add in the dividends paid since this article.
    Aug 28, 2014. 01:12 PM | Likes Like |Link to Comment