TradingHelpDesk

Another Jobless Recovery, Part 1

"Our nation has never had so many unemployed and underemployed college degreed people as now".

You are right.

It's the same here in the UK. There is a shrinking minority in premium business and professional jobs and a fast growing majority that are working part-time in supermarkets or in call centers - or just plain unemployed.

Every day I lose track of the number of people I meet who studied for years to be a respected professional but have had to dilute their dreams and income aspirations to fit in with the new framework of capitalism:

1. Redistribution of wealth from the many to the few.
2. Outsourcing to India, Asia etc.
3. Tax slavery for the masses.
4. Privileged treatment for the business leaders who have handily placed pals in Washington DC.

The recession accelerated this trend but it has been here for years.

Twitter Courtesy

Block em all.

The Hindenburg Omen

Really interesting article and links. Well worth exploring for those who haven't already.

Bill Gross: Six Month Rally Is 'At Its Pinnacle'

You can look at your Dow 5-month return of 40% or your Dow 10-year return of -3%, depending on whether your glass is half-full or just realistic.


On Oct 29 08:36 PM jstratt wrote:

> Hi Bill
>
> I would likely remove my money from the market before I would invest
> in your theory of expect minimal returns for life.
>
> Lets see if in April I had taken your advise I could have a negative
> return instead of 40%. I know you are just talking your book (ie
> invest in bonds) but your advise sucks.
>
> I kind of think the new normal is a suggestion to invest without
> expectation of return. We have had a crash I think I will stay with
> stocks. Enjoy hibernating with Mohammad! Hope you have plenty of
> blankets.

My Coming Dinner With Barrack Obama

"but that doesn’t include another $10,000 for my date’s dress."

The price a reflection of her beauty, not her size, I am sure.

Friday Outlook: Commodities, Global Markets

I wish the Chancellor of the Exchequer, Alistair Darling, knew half as much as you in relation to the economy.

The UK wouldn't be in nearly the economic mess it is in, to my great personal cost.

George Soros: The Guru Outlook

Is there a relationship between intelligence and one's political leaning?

I have seen no evidence of it.

Here in the UK the vast majority of politicians are self-serving idiots, irrelevant of their political stance.

On Oct 29 09:29 AM p church wrote:

> If Soros is so smart, why is he a liberal?

The Myth of Uncorrelated Return

I think the past year proved all risky assets are more correlated than we previously thought. Especially in times of market turmoil.

Maybe gold is the only exception to this generalisation but it appears to me there are only 2 groups of assets:

1. Risky Assets.
2. Risk Free Assets.

The idea that high yield bonds, equities, commodities, property and illiquid hedge funds can be merged into a recession proof, risk/return optimised portfolio seems increasingly absurd.

www.dukascopy.com/iben...

Marc Faber: Dollar Due for Rebound, Emerging Markets Worth Considering

Thank you for telling me what Marc Faber thinks.

What do you think?

Is the Current Economic Growth Sustainable?

"Is the Current Economic Growth Sustainable? "

Shouldn't the title be 'Is the current economic growth real?'

It's just froth from the monetary and fiscal policy isn't it. Where are the real jobs being created. A risk appetite rally is not the same as real economic growth.

And, of course, there are 11 trillion reasons why there will be brakes on growth for a decade - one for every dollar of US government debt.

Only inflation, lower government spending and higher taxes will fix that problem and none of those 'cures' do much for economic growth.

Silver Unmasked

After topping just above $18 and trading in range for two weeks Silver corrected to stall slightly above $16. The first gaining session after five losing ones in a row came in line with the bullish trend that set the tone for the last three months. The Silver market presents the opportunity to open a Long position to take advantage of a fresh round of buying power in an attempt to reach higher highs once again.

www.etoro.com/A8334_TC...

Bill Gross: Six Month Rally Is 'At Its Pinnacle'

"Bill Gross: Six Month Rally Is 'At Its Pinnacle'":

For once I agree with the bond salesman.

Policy Lessons from the Great Depression

"Personally, I do believe in pure Capitalism and am all for letting industry regulate itself".

We tried that Sir. That's how we got into this mess.


On Oct 27 09:06 AM LilBob wrote:

> This is the kind of out-dated and irrelevant thinking that really
> has no place in modern discussion if we ever hope to fix our current
> economic mess. What brought us out of the recession was interest
> on US war bonds, GI Pay and wages paid to Rosie the Riveter. The
> restoration of the consumer base made possible by the scaling up
> for WWII was what brought the country out of the recession. Reducing
> taxes on the wealthy at this point would do nothing but exacerbate
> the creation of aggressive investment schemes that created our current
> mess.
>
> This ongoing effort that I see in the media by the "Fox News" crowd
> to vilify the current administration and claim that private industry
> can regulate itself and take care of the economy alone is ludicrous.
>
>
> Personally, I do believe in pure Capitalism and am all for letting
> industry regulate itself, so long as we also minimize all government
> contracts and eliminate all subsidies and tax breaks-instituting
> a flat tax on all organizations-including so called "non-profits"
> that claim to be for the public benefit but engage in aggressive
> fund-raising and pay their executives 6 and 7 figure salaries. This
> would also obviously imply that we never have another government
> bailout of anybody, and those companies that are still in bailout
> mode would be subject to harsh penalties-including the institution
> of an "E-3" pay rank ($1650/month-the same pay a private first class
> on active duty receives) for all of those who are de-facto government
> employees.

One Dollar One Vote Still Rules in Washington

Thanks for taking the time to read and comment.

I find it interesting that any comment that suggests we should refrain from screwing over the man on the street, to further line the pockets of the privileged few, provokes readers to describe me as a communist.

It's not communism. It's basic social and economic justice.

Is Europe's Rally in Its Final Stage?

Considering purely economic data we shouldn't raise rates for many months yet, but from an asset price inflation point of view we already should have.

Oil is a prime example. It's already way above fundamental fair value but there is a wall of liquidity coming into markets which is desperate to find a home. Thus the S&P rally as well.

The Fed and Bank of England are digging us all a very big hole.

www.dukascopy.com/iben...