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- Bust, Bail, Repeat: The U.S. Enters into an Ever-Worsening Cycle [view article]
- A Fed Rate Hike Won't Solve the Current Crisis [view article]
- Ten Bear Market Phases, Current Edition [view article]
- The Fed is Fighting a Two Front War [view article]
- Impact of Candidates' Tax Plans on Deficit Worsens [view article]
- The Dead Cat Returns to Earth [view article]
- Wall Street Breakfast: Must-Know News [view article]
- The Lost Decade: S&P Annual Return Just 2.5% Since 1998 [view article]
- Weekly Market Review: Stagflation Story Remains Intact [view article]
- Don't Confuse Correlation with Causality [view article]
- Wall Street Breakfast: Must-Know News [view article]
- Historic Financial Collapse Underway? [view article]
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- Vacation-Proofing Your Portfolio
- Sector Performance in the Last Two Bull Moves
- Don't Confuse Correlation with Causality
- Ten Bear Market Phases, Current Edition
- Impact of Candidates' Tax Plans on Deficit Worsens
- Bespoke's Sector Snapshot (7/25/08)
- The Dead Cat Returns to Earth
- Wall Street Breakfast: Must-Know News
- Friday Outlook: Stepping Back
- The Fed is Fighting a Two Front War
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Historic Financial Collapse Underway? [view article]
Buillion man the homeless are only really seen in the great cities of liberalism where the homeless flock because of all the hand outs. Anyone who wants a job here can get one hence the massive immigration.My comments on the article is that his description of causes and outcomes are probably spot on. However I think it will be a very slow bleed downward as it has been. So I'm not sure the dollar as the world's currency researve will go away. Rather those who hold dollars will slowly buy up our largest corporations. So are things getting worse... yes. Will they get worse without the desribed free market solutions above Yes but I don't see an end of the world scenario.
I was quite the skeptic of NewWorld order one world government but now it seems very plausible in the form of a one world fascist government. Large global corporation and other international banking conglomerates already control most of the political parties via funding and the political parties have written laws making in very hard for third and fourth parties to suceed. They have effectively created politcal duopolies that are funded by business that contribute to both sides to protect the order. In the US third parties can't even get their candidates into the public debates unless they poll something like 15% in the public polls. Who controls the polls? GE, DIS, and other media giants control the 15% and who gets to be heard. Its all fascism. Its never a failure of government or regulation but always a failure of markets. Markets simply reflect economic realities. Markets don't fail they simply describe the reality. When markets are artificially controlled you get resource misallocations and hence bad investments, shortages, surpluses, coruption, war, etc..
Congress has an approval rating of like less than 15% and still no viable third party can be heard. I think I've described above why. So as creeping socialism/fascism increases so will poverty, unemployment (measured by real output...being paid to hold a shovel doesn't count), theft, wealth concentrations, etc.. Reply
Historic Financial Collapse Underway? [view article]
**IN RESPONSE TO**"As long as the US has the strongest military the world has ever known, strategic conflicts will be created, the dollar will remain the reserve currency, because the toughest kid on the block takes your lunch money at will. Until a viable alternative is created,the world turns on oil, who ever controls the oil, controls the game, The US has placed a strategic base in the middle East to control that oil, its that simple"
**********************...
If only that were the case for you guys.
Sadly, irrespective of how strong the military is or how much oil you have, or how much you threaten, boast or reassure, one irrefutable fact remains. All that is absolutely nothing.
You have no money to fight your wars. You have no value in your dollar to be economically persuasive. Other nations would not take a bankrupt nation seriously. As long as the US owes 5 times its own GDP in debt, and as long as China has the ability to dump enough US Treasury Bonds to hammer the final nail in the proverbial US economic coffin, it doesn't matter what the US cares to do.
The last country (Nazi Germany) that went bankrupt and tried to bully its way back into prosperity met quite a dismal end. Reply
Alan Greenspan's Bosnia Moment [view article]
I wonder if Mr. Greenspan noticed the elderly couple that gassed themselves in their home after receiving a foreclosure notice, or the wife and mother who shot herself on the day that the family home was to be auctioned, leaving instructions to her husband and son to use her life insurance money to buy the house. This is what the American Dream has become. The financial regulators and people in government who allowed this supposed laissez faire feeding frenzy should rot in hell. ReplyA Fed Rate Hike Won't Solve the Current Crisis [view article]
I have to agree that inflation is what destroys wealth. Few benefit, most suffer, especially the poor and the struggling middle class. The wealthy are usually adept at avoiding the worst inflation better than the rest.There are benefits to everything, including cancer and war. But that doesn't make them desirable or something we would hope for. Reply
Things You Would Never Have Said Eight Days Ago [view article]
Erick D.T.My first impression of the SEC's head's testimony before the senate last week was that he had no concern for nor intenion of protecting any sector of the market from 'naked' short selling except his friends in the financial arena. Junior gold and other precious metal and mining stocks are being mercilessly 'carpet bombed' by ruthless short sellers, minutes before markets close each day, with impunity!
The apparent objective of these tactics is the forcing down of the
stock's price of these companies and subsequent 'panic-selling' by frightened investors unaware of these behind the scenes stealth
activities! Of course the result of these acts can threaten the stabilty of a company (particulary small caps whose capital resources are limited, but also large cap stocks one of which was affected in this way by a CNBC commentator who confessed on a Street.com interview to doing this very thing himself when he was manager of a hedge fund in which he had upwards of 25 million dollars at his disposal with which he knocked down the stock price
of several large cap companies! (See financial sense.com archives) This has been going on for years in the markets, now when suddenly the spector of short selling financial stocks occurs, on the
scene appear the three stooges of American Government (I won't
mention them by name!). These three pigeons have been chosen
to dutifully camouflage the well orchestrated rape and pillage of the average hard working investors money.
They should (all three of them) be summarily executed!
Amen.
Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
Inflation is good??? This is insanity.Inflation would effectively reduce fixed rate debt in real terms and similarly reduce savings in real terms.
This is tantamount to transfering money from savers to those that have demonstrated fiscal irresponsibility. It's wealth redistribution at its worst...thievery plain and simple. Shame on you for even suggesting the idea. Reply
Wizard
Historic Financial Collapse Underway? [view article]
Kitkat, you have a very good point on the term limits for Congress. Seems like all that they arei interested in is raising money for the next election. As a test ask your local Congressman how many of the bills he voted for that he actually read. The money raising also brings influence and access as its inevitable by-product. The problem I see in letting many of these institutions fail is that the middle class and to a lesser extent those struggling to get there will be adversely affected to a much larger degree than any of the heads of the financial institutions in question who are most likely very wealthy and adept enough to protect that wealth through the current crisis. ReplyTiedeman
On Oil, Gold and Flying Pigs [view article]
SKF looks compelling. The financials are so far from bottoming out it is not even funny. ReplyTiedeman
Things You Would Never Have Said Eight Days Ago [view article]
This rally in the banks is a fake as that rolex on the homeless man. ReplyTiedeman
Bust, Bail, Repeat: The U.S. Enters into an Ever-Worsening Cycle [view article]
Superb post. The "V" like bounce is just that, a dead cat bounce. One must be ever so cautious. Danger ahead. ReplyLathrop
Economic Upswing? Check Back Next Year [view article]
While everyone may disagree with the timetables, I thought this was an extremely well-thought out and well-written article. Thank you. ReplyLathrop
A Fed Rate Hike Won't Solve the Current Crisis [view article]
I started reading this article until I got to the point where the author started speaking about how low rates and inflation stimulate home buying. I then checked the Fed Fund rate and saw that banks are borrowing for 2 percent and lending it out to prime rate customers at 6.74 percent - higher if your credit, income and teeth are not spotless. You would think that a bank could live on those kinds of spreads but they are not passing them along to the homebuyer, they are just hoarding and speculating. At that point the rest of the article degenerated into a discourse of T. Boone Pickens' wit and wisdom. Its sort of like calling up the fellow who won last weeks Mega Millions and asking him what he would do to save the economy. And this article is an editor's pick? Shame. ReplyCulligan
A Fed Rate Hike Won't Solve the Current Crisis [view article]
Since we could not find a vehicle registered for T. Boone Pickens, the oil man on television, see what vehicle his wife driveswebofdeception.com/#pi...
Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
We always talk about the Fed and interest rates, but there is another tool that is far more effective: fiscal policy, i.e., tax rates.A 1% income tax surcharge (about $28 billion) both dampens economic activity [maybe we should have done this a few years ago] and reduces the federal deficit, a KEY cause of the weak dollar. Likewise, when times are difficult, a 1% tax decrease puts more money into the economy right away. Tax changes, unlike interest rates, directly affect the average American and start working immediately.
While the Bush tax cuts might have made sense during the early-2000's economic downturn, they should have been reversed as the economy improved and then overheated. Then we could be cutting taxes now, much better than lowering interest rates. You can't have it both ways, stimulating the economy when it is hot and when it is cold.
For those who think taxes are always bad, how about we just cut them to zero and borrow the entire Federal budget? That OK with you? Reply
A Fed Rate Hike Won't Solve the Current Crisis [view article]
You are overlooking that many of the problems we face today are the direct result of interest rates being lowered too much for too long...The argument for lowering rates is to stimulate the economy-- but you can't fix overleverage with more leverage
Meanwhile, interest rates that are markedly below the rise in the cost of living (not necessarily the textbook definition of inflation) means that you are taking money away from savers (aka the elderly and others on fixed incomes) and diverting that money to stupid bankers who shot themselves in the foot.
Punishing the prudent to reward the foolish is no way to fix anything Reply