Mike Stathis

Book Review: Great Depression Ahead

I'm encouraged to see that there are many who realize how useless Dent is. Dent's "depression" book is a bit late. He wrote AFTER others (such as myself) actually came out with books that predicted things. His book was released in 2009. You had to have been in a coma or on another planet to not already know what to expect by 2009.

Dent belongs to the CNBC sheep herders. and he is a hack for Wall Street and the mutual fund industry.

But you see, since the masses are very ignorant and gullible, most people cater to their stupidity, greed and desperation. In the end, these snake-oil salesmen are the only ones who makes money, whether they are right (rarely) or wrong (almost always) because you don't research their track record and you can't spot their agendas (although they are too apparent). Instead of paying someone (or buying their books, newsletters, etc.) who has been right, fall for their BS because they've sold you, just like the infomercial kings, Kevin Trudeau or Carlton Sheets.

Experts, guys that really know how to make money don't speand their time on TV telling you how they can make you money. And they don't roll out a new book every 3 years changing their mind about the stock market like Dent. Heck Harry, the market can only go two directions - up or down. You should have been able to cover that in 2 books rather than the 5 or 6 you've written in the past few years.
Oh and by the way, I heard Dent recently bought a new Maserati (no joke). And he wants to thank you suckers who helped pay for it.

Book Review: Great Depression Ahead

Come on Larry. All you've done is shown how green you really are. The most disapointing thing is that, by your poorly researched analysis of Dent, you have led more sheep into the slaughterhouse. You really need to check the track record of Dent.

Perhaps you weren't aware of his book "The Great Bubble Boom" released in 2004, or his Dow 20,000 book a few years earlier. Dent is like the rest of the mainstream media hams who steer you suckers in the poor house. And you deserve it because you're too ignorant and lazy to do proper due diligence on these snake-oil salesmen. The same goes with Peter Schiff.

These guys are markers; that's all they are. And if you listen to their "advice" you will lose more than if you listen to the perma-bulls.

Fact: you will NEVER find a REAL EXPERT with VALUABLE investment guidance on TV or wityh a book in the top 10. For those sheep who think I am wrong, ask yourself this question...if I am wrong, why do you all get blasted in the market?

If you kids want to ever have a chance at avoiding being taken advatage of you need to stay away from the guys who hit the mainstream media because they hit the mainstream for a very good reason - to steer you people into financial destruction.

Those who ignore track records and pay attention to the clowns in the mainstream media deserve to lse everything. I've lost my tolerance with sheep. They are beyond help. And most likely, thevast majority of those who read my post won't get it.

Cramer Grilled on Jon Stewart

Simply for the fact that Seeking Alpha is showing this and has a section devoted to covering what Cramer says on his stock manipulation show, demonstrates that Seeking Alpha is no better. Keep that in mind. I continueto get censored on this site. If you want to see how CNBC and the rest of the media works, check these articles...

www.marketoracle.co.uk...

www.marketoracle.co.uk...

The Derby Trade

You guys come out with some good data, but I must say, this is completely useless. And it encourages gambling. No offense but people would be better off buying tickets for the Derby rather than acting on this. The problem with trading terrible stocks is that you could get stuck in them. This is a useless stock. Some (hopefully) constructive advice: stick to data mining. Getting involved with trash like this only discredits you.

Why China Will Continue to Buy U.S. Treasuries

Rick, you are so wrong on so many accounts that for me to pick apart your article would consume my entire day. This piece is yet another example of the journalistic irresponsibility we have suffered in America for years.

I would suggest you either leave the economic analysis to experts, or else find credible sources that aren't Wall Street or government hacks.

For starters, anyone familiar with China knows well about their gov bail out. China is being affected like most every other nation but China will mount a real recovery in a few years, unlike America. China has a real economy, unlike America's Ponzi scheme economy which is highly dependent on foreign financiers to keep it afloat. And China does not have a $72 trillion deficit in its entitlements programs over the next few decades like America.

There are so many issues I really don't have the time to address. All I can say is that I would advise you to stick to one topic and learn it well. And I would advise against that topic being anything to do with the economy. Perhaps you might consider going back to writing on the Big 3. Alternatively, you might consider applying for a job at CNBC.

Any Reason Current Crisis Should Be Compared to the Depression?

I find this to be a pro-Wall Street article. First, the sources quoted have little knowledge about the economy and stock market, as confirmed by their track records. This is especially true for Siegel. Just check his archive on the Yahoo panel of "experts" (shills).

Second, this piece assumes the market has bottomed out. I would not bet on that.

Finally, the piece is very weak in defining a depression based only on stock market performance. By the way, I find it odd how the author failed to mention the fact that the Dow recently experienced the largest one-week drop EVER. Why did the article not discuss the depression-era instruments used by the Fed and Treasury? Why did the piece not discuss the fact that Fannie Mae (created during the depression) to help solve the housing crisis in the 1930s is essentially finished? How about the largest banks in the world, which are insolvent or some of the largest, oldest banks, which are bankrupt?

Anyone who truly understands what is going on realizes we are currently in a light depression. But unfortunately, things will get much worse. And it is likely that the Dow will head much lower down the road. Enjoy the rally now, but when it fails to break the lower highs downward trend, watch out below.

This article is a clear example of an attempt to manipulate sentiment by conveniently withholding the most relevant issues, while cherry-picking information that attempt to make a case for a better than expect picture of things.

Bill Miller: 'The Worst Has Passed'

This post by SA, which apparently was not directly authorized by Miller, is yet another attempt of SA to become the CNBC of the Internet by promoting Wall Street hacks and clueless authors while censoring and deemphasizing articles by the very rare few who actually deliver TRULY valuable insight.

Miller did little more than ride the coat tails of the bull market of the 1990s, while exposing investors in his funds to style drift and excessive risk. For many years, his reckless approach worked; that is until reality hit.

This man has absolutely no idea what is going on, similar to 99.99% of fund managers. Article continues here.....
www.avaresearch.com/ar...

Swine Flu: Trade Smartly, Beware the Hype

CDC? WHO? You mean government agaencies? First of all, I spent 12 years in science and I'm more knowledgable than most who work for these agencies. Second of all, anyone who goes to wikipedia shouldn't read my articles. That source is for naive teenagers and is clearly slanted and manipulated. Where did you kids come from? Stock chat boards?

Only a fool cannot see that the government has escalated this flu hype for other reasons, perhaps as a test to see how they can control and fool the public; a test session for the near future.

Fool's Gold (Part 2)

Gold Barron, as you know, anyone can make a case by selecting specific data points. My illustration was over an extended period and I looked at several data points because doing so mimicks a "no" or "poor" market timing scenario. Even in my analysis, I showed periods whereby you could make money, but timing or random luck was involved.

The points you picked were just prior to the previous gold bubble (hence a low entry point) and in the midst of the current gold bubble (hence high exit point). You have reinforced my argument that timing matters.

Fool's Gold (Part 2)

Gold as a "preserver of wealth" implies that it keeps up with inflation, which (other than for short periods depending on when you bought it), this is not true.

As far as the "One oz of gold has always bought approx. 600 loaves of bread," where I live, a standard loaf costs around $2.89 and has for a couple of years. Prior to that, over the past 8 years, bread was around $1.80 - $2.30 (where I live) while gold was ~$230-$650. So this is about 100-300 loaves. Gold has outpaced inflation during the past decade, but only because the bull market began right around that time. If you go back into the 1990s, 1 oz of gold bought even fewer "loaves of bread."

All of this talk of gold being a long-term "safe haven" is not true. It is a short-term safe haven. Timing matters unless you live forever. Otherwise, you face liquidity risk.

Fool's Gold (Part 2)

By the way, if you are looking for something that holds up against inflation, I would look to oil; specifically oil trusts. When gold became decoupled from the dollar in the '70s, oil took its place. If something is linked to the dollar, it stands a much better chance of hedging against inflation. But oil can also be very volatile so it too is best traded or at least the positions should be managed. I do own some oil trusts and I will be looking to buy more as crude prices continue to fall back in line with supply-demand.

Fool's Gold (Part 2)

I don't trade currencies. It's gambling. I have no bias either way for gold. I only deal with helping others make money, regardless whether that means gold/stock market will go up or down.

Gold a commodity? Not exactly. Gold is as much of a commodity as crude oil. Neither exactly fits the bill as say wheat or copper because the later two are driven primarily by supply-demand dynamics. Gold and crude are often driven by geopolitical variables and extensive market manipulation in addition to supply-demand.

I owned gold last year but I don't now, nor have I recommended it to my clients (nor am I recommending a short position).

I think you need to read part 3. "Holding up against a declining market" only matters if you must stay in the market. The best way to protect yourself against a delcining market is to stay out of the market. The best use of gold as an investment is to hedge against declines in the broad market, but even these are short-term hedging positions. www.avaresearch.com/ar...

"Wealth for the ages"? As data shows, gold does not hold up anywhere close to inflation. Long-term holders of a gold face significant reduction in their principal. I have shown that conclusively. I showed it for 1980-1998. I even showed it over the past two years. Use any chart you want. The result will be the same.

I do not feel the gold bubble will burst anytime soon. I would be surprised if it did begin its downward cycle before 2014. I would be very surprised if the gold bull market ended by next year. In the meantime, I feel gold will go significantly higher, but that is not the point. The point is that investors need to understand that:

(1) Gold is NOT a hedge against inflation, so buy-and-HOARD mentality is not recommended. You need to prepare in advance for the downward cycle.

(2) The higher the price goes, the more cautious you should be. At current prices, you should not be buying more gold as it climbs higher. You should be managing your position. If you are not trading the volatility, you are really missing out on much of gold's investment value.

These are the facts.

Those who fail to understand my message are likely the same ones who get stuck when markets turn from bull to bear. Remember, everything pumped out by the financial media is designed to make sure you get stuck in a bear market. That is one reason why almost everyone does.

If you bother to critically analyze what these extremist marketing guys say about gold, one who understands the realities I present can easily make them look like the fools/liars/manipulators they are.

Once again, I have no bias, I do not sell securities or gold. I sell investment intelligence. All others are simply marketers. They don't need to be right and they rarely are. All they need to do is convince you they know what they are talking about. That is how they make money. I need to be right and I frequently am. That is how I make money.

7 Reasons Not to Buy Berkshire Hathaway

The fact that BRK pays no dividend is something that is a bit bothersome to me. I too addressed this point in a previous article as a reason why I would never buy the fund. Good of you to notice, since the masses rarely criticize him.

seekingalpha.com/artic...

But the fact is that all value investments MUST pay a dividend. One could argue that the reinvestment of the dividend has enabled BRK to achieve the growth similar to that seen in a growth stock/fund, but with less risk. My counter would be this...leave it to each investor to determine whether they want the dividends reinvested.

Another reason I would not be in favor of buying BRK (esp. during this bear market) is the fact that BRK has no ability to avoid market risk.

Also, you should note that Buffett invests in insurance companies mainly because they are cash cows. And having cash is essential to his asset management strategy, since, like mutual funds, BRK works primarily to lower the cost basis of positions during market declines, as opposed to minimizing market risk via liquidating positions. This is something I also discuss in the same article.

Interview with Peter Schiff: Reflating the Bubble

Commenter "yellowhoard" knows the real deal. I find it amazing how the commenters are quoting guys like Roubini and Gross without realizing these guys are lost in the woods. Sure, for naive investors they may seem like they are ahead of the curve, but truly sophisticated investors don't pay attention to them. You all believe they should be listened to because the media has told you that you should. That's how they media makes money - more audience = higher ad revenues.

It's shocking how green people remain, even after the 2 biggest bubble implosions on earth in less than 10 years.

Here's the important rule you will ever learn so write it down: you will never receive any truly valuable investment guidance from a single person who is a "friend" of the mainstream media. The media would never allow such an expert to provide sufficient value to help you because they work for Wall Street.

Michelle Caruso-Cabrera, Charlie Gasparino Bash Finance Blogs

On Jul 25 07:06 AM Beyond Trading wrote:

> If you are a serious professional trader making money in the market
> you switch off TV except those cases where Warren Buffett accepts
> to give an interview. There are cases where it is interesting to
> watch TV though, to check out what the herd is doing, Cramer, to
> profit from the opposite side. As for the rest sorry but no time
> and we do like money instead of losing it following others opinions

With all due respect, you should NEVER watch TV for investment ideas UNLESS you want to see what the sheep are thinking and trade against their stupidity. I personally don't have the time for that trash and don't need to tweek out cheap trades like that.

However, I invite you to read these 2 articles about Buffett before you decide again to listen to what he has to say .....

www.avaresearch.com/ar...
www.avaresearch.com/ar...


I wonder if the CNBC bimbos have seen these articles....

www.avaresearch.com/ar...
www.avaresearch.com/ar...

Everyone at CNBC deserves a very long prison sentence for censoring, manipulating the sheep who are stupid enough to watch them and serving as PAID hacks for Wall Street.