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  • Why Soros Is Probably Buying Gold Now [View article]
    It costs 1.8 cents to mint a penny. That's why Soros is buying gold.
    Feb 1, 2010. 11:02 PM | Likes Like |Link to Comment
  • What Is Getting Hit Hardest? [View article]
    Coal, silver, the banks...all way off their highs.

    By the way, after a solid year of gains it is reasonable to expect some sideways drift.

    ISM numbers and earnings are supportive of current market valuations:
    Feb 1, 2010. 10:49 PM | Likes Like |Link to Comment
  • Why Soros Is Probably Buying Gold Now [View article]
    Sprott Asset Management recently commented on gold:

    "Gold is quickly moving into the hands of those who are unwilling to gamble on fiat currencies or bonds as a store a value. The new owners of gold are unconcerned with its lack of yield but instead are focused on its historic ability to preserve wealth and its unquestionable value."

    I couldn't help but agree...
    Jan 31, 2010. 10:13 PM | 1 Like Like |Link to Comment
  • Property Values Projected to Fall 12% in 2010 [View article]
    Better believe it. There's tons of hidden supply, and the current market is propped up by low rates (via MBS purchases by the Fed) and purchase credits.

    Believe it or not, high risk loans are still being made to home buyers...only now they are being supported by the FHA.

    Japan's housing bust is 17 years
    Jan 31, 2010. 10:05 PM | 3 Likes Like |Link to Comment
  • Too Much Leverage Precedes Many Disasters [View article]
    A recent paper did a great job of describing the bubble cycle and its ties to credit. (NBER working paper: CREDIT BOOMS GONE BUST: MONETARY POLICY, LEVERAGE CYCLES AND FINANCIAL CRISES, 1870–2008) So did Galbraith's book, "A Short History of Financial Euphoria".

    The most blatantly obvious credit bubble in the world right now: China (

    The less obvious credit bubble - since many expect the bubble has already burst - is the US. Total US debt has risen over the past couple years. Yes folks. We're fighting the US credit bubble implosion by borrowing more money. Sounds like a great plan to me.
    Jan 25, 2010. 03:35 PM | 1 Like Like |Link to Comment
  • Is It Time to Buy a House Yet? [View article]
    Japan's housing prices have been falling for 17 years.
    Jan 25, 2010. 03:20 PM | 12 Likes Like |Link to Comment
  • Coal, Energy Demand, And Sovereign Debt [View article]
    Energy use in China is dominated by industrial customers. This means much of the energy used in the country comes from power-plants.

    Compare this to the US where energy use is more evenly split across various sectors (industrial, buildings, transportation).

    As the world's manufacturing floor, China is set up to use more coal. However, as it transitions to a more consumer-oriented economy, oil use should rise disporportionately.
    Jan 25, 2010. 03:09 PM | 2 Likes Like |Link to Comment
  • Beijing Believes the Worst of the Crisis Is Behind It [View article]
    If China is one big ponzi scheme, so is the entire commodities market. Take China's stockpiling out of the equation and commodity prices collapse.

    GTAA suggests copper is the most 'bubblicious' of them all:
    Jan 25, 2010. 02:52 PM | Likes Like |Link to Comment
  • The Case for Commodities - In 2010 and Beyond [View article]
    Does anyone know anything about GTAA? According to them, commodities are
    Jan 25, 2010. 02:48 PM | Likes Like |Link to Comment
  • Weighing the Market Week Ahead: Fasten Your Seat Belt! [View article]
    Obama and friends will probably weigh on the markets this week too. What does it all mean, after all?

    Note the conspicuous absence of Geithner and Summmers:
    Jan 25, 2010. 06:45 AM | Likes Like |Link to Comment
  • Meredith Whitney: Panicky Over Nothing [View article]
    She thinks the probability of follow-through is high because Obama's ratings are tanking and he needs to build popular support.
    Jan 25, 2010. 06:37 AM | 1 Like Like |Link to Comment
  • S&P 500 Now at Oversold Levels [View article]
    The market got complacent. Bullish levels hit extremes. In fact, corporate bond yields are telling a clear story right now:
    Jan 23, 2010. 10:57 PM | Likes Like |Link to Comment
  • Commodities Investors: Don't Be Fooled by Fake China Shakeout [View article]
    We're due for a shakeout. A consolidation is to be expected after such a runup.

    But we mustn't forget that we're in a deleveraging cycle. McKinsey explains:
    Jan 22, 2010. 09:59 AM | 1 Like Like |Link to Comment
  • Investors Are Missing an Obvious Opportunity in Citigroup [View article]
    If you can't beat 'em you might as well join 'em. Too big to fail...that is, until the US government fails.

    But as they say, 'Capitalism without bankruptcy is like Christianity without hell'.
    Jan 19, 2010. 11:38 AM | Likes Like |Link to Comment
  • Bigger than the Banking Crisis [View article]
    The problem is that we're scared of failure.

    However, 'Capitalism without bankruptcy is like Christianity without hell'.
    Jan 19, 2010. 11:35 AM | 1 Like Like |Link to Comment