TradingHelpDesk

Goldman Sachs Just Can't Feel the Love

GS is hated as more and more Americans are learning the GS style of trading has zero economic benefits. It's just redistributing wealth from the pension and mutual funds of middle America to the bonuses of GS traders and executives.

How does trading billions of dollars worth of equities every day create jobs in Main Street? It doesn't. Their prop desk reminds me of the market timing debacle in Wall St about 6-7 years ago.

World Trade Organization Warns, Gold Rises, IMF Talks, U.K. Loses Credibility

Robert, thanks for taking the time to read and comment.

I certainly was discounting unemployed people not on benefits. I think the whole article shows I am cynical to our 'leaders' and sympathetic to those who are struggling. I totally agree with you.

Is the U.S. Headed Down the Same Path as Japan?

Good article thanks. I think Japan had one problem that the US does not have - a lack of flexibility. But Japan'a balance sheet is stronger. I think we'll see the US recovery persist but as the structural problems remain we can be pretty sure another very nasty recession is coming some years hence. If you have the time I recommend a review of a very good 118 page market report available via:

tradinghelpdesk.ning.c...

Friday Roundup: Commodities, Emerging Markets

"Large banks and more recently pension funds have suddenly become infatuated with gold. They chant the mantras that gold bugs have known for years: gold is a store of value; owning gold is financial insurance; an ounce of gold will always buy a good suit. The idea is that if the economy continues to weaken and share prices decline, a strategic allocation of the precious metal will hedge and offset some of the losses in the financial sector."

Source: tradinghelpdesk.ning.c...

Wall Street: Dumb as It Ever Was

Superb. Love the photo.

"I'm with stupid" is something all the Bank of England MPC members can say during meetings.

TRADE LESSON: LEARN THE RELATIVE STRENGTH OF A STOCK

More strong analysis. Great work.

Deconstructing Unemployment

Very useful thanks.

Flashback: Bernanke on Unemployment: ‘we don’t think it will get to 10 percent’

Great article. The U-6 measure is fascinating. Thanks.

Tibman's 'The Murder of Lehman Brothers'

"The Murder of Lehman Brothers"??

Lehman Bros. wasn't murdered. It committed suicide via an overdose of greed and financial risk ignorance.

The financial world is a better place without it. Look at it as a Darwinian process of weaning out the truly stupid.

Buffett's Burlington Buy Is Really a Bet on China

Good article, but the "bet" is on the US consumer isn't it?

Ok, I agree much of the goods transported by rail from the US ports will have been imported from China but you still need a recovering US consumer to buy them.

And I think China can get it's coal and wheat a little closer to home than the Mid-West - Australia. Which is why it is already firmly in recovery mode with 2 rate hikes in a month benefiting from Chinese growth of 8%.

Lack of Selling Pressure a Positive Signal

Great article and comments thereafter. I learn something everytime I visit this site.

Today's FOMC Meeting: Extended Life Support for Markets?

The mess is deeper than the 8-month rally implied. Only yesterday here in the UK the government increased its economic interest in Royal Bank of Scotland to a potential 84%.

There is a consensus that the UK banks have so far only written down 40% of the losses they should have.

It's too early to cut rates in the UK or US, that's for sure.

tradinghelpdesk.ning.c...

128 of the Top Financial Blogs

And if any of you actually take the time to read most of these blogs... you need to get out more.

Surely 5-6 great blogs is enough?

The Entry Point Market Investors May Be Missing

Excellent article.

Equities were due a correction. The rally since March was relentless but much of the progress was driven by liquidity, not fundamentals.

When that liquidity and stimulus is drained from the market the US consumer needs to step up to maintain growth. However the danger of a double-dip has been understated as we still have unemployment at 9.8% and many consumers need to rebuild their personal balance sheets after a decade of low savings, high spending (via borrowing).

So whether you look at technicals or fundamentals a retreat was inevitable.

www.elliottwave.com/r....

Increased Consumer Spending Does Not Make Us Better Off

If the increase in consumer spending comes from increased earnings then it is positive.

If it comes from debt then at best it is just borrowing from future earnings and creates inflation.

That is why we still have deflationary pressures. The economy is paying for a decade of low savings, and consumer spending at inflated levels due to borrowing. It will take at least 5 years for consumers to rebuild their balance sheets and let's not forget 9.8% unemployment.

Excellent piece on ongoing deflationary pressures here:

www.elliottwave.com/r....