But didn't the Federal Reserve say they would probably keep buying stuff as long as it was necessary? Its going to remain necessary until they essentially completely debase the value of the dollar. Its inevitable at this point with America's debt, out of control budget deficit, and now the Federal Reserve holding over 4 Trillion dollars of toxic assets on their balance sheet by the end of 2013.
This isn't just going to end with a market crash this time and increased prices like it did in 08/09. This time we will see massive hyperinflation, greatly increased food/oil prices, the decoupling of oil from the dollar, the dollar being kicked as the world's reserve currency, the government being forced to adhere to a budget and sever medicaid/medicare/social security & cut tens of thousands of more jobs (both federal & state), probably rioting and pillaging, and more. Lets try to predict what will happen when 45 Million people's food stamps get cut?
After Bernanke's statements and commitment to continue rigging the economy and propping it up it is inevitable. Its really just a question of when at this point. At what point do people lose "faith" in the dollar or what forces the government's hand first in cutting spending? Or maybe it will happen when the Federal Reserve starts unwinding their toxic dump of assets?
In The Wake Of Annaly's Downgrade, It's Time To Consider Alternative Options [View article]
NLY has paid dividends for 15 years and has a more conservative leverage ratio than a lot of other MREIT's. It makes a fantastic pick in a basket of others and will almost certainly outperform the market going forward (especially when we're at 4 year highs). Analyst opinions aren't worth their weight in imported Swedish sex toys. A lot of analysts have negative views on AGNC also, which has returned over 300% in the last 4 years. Long MTGE, NLY, AGNC, AMTG, & ARR.
The Obama administration will ask Congress to raise the nation's borrowing limit by another $1.2T this week, marking the third and final increase from a deal reached over summer. Treasury officials note the increase is necessary because the government will approach within $100B of its current limit by Friday. [View news story]
Have you ever wondered how long you could pay off your Visa with your Mastercard and your Mastercard with your American Express card before someone actually noticed you weren't really paying anything off? It's kind of like that.
Housing Starts, New Permits Rise Sharply In September: The Economy Isn't Deteriorating [View article]
My experience and knowledge says the economy is deteriorating. Common sense says the Federal Reserve would not be pumping 85 Billion dollars of liquidity into the US economy each month if they weren't trying to stave off something horrible. The real long term unemployment including discouraged workers is around 20%. Bush era tax cuts are expiring in a few months which will reduce a lot of people's incomes by 3% or more.
The fiscal cliff getting kicked again will cause catastrophic budget cuts to an already limping economy. Expect huge job cuts and more increases in taxes starting next year. I wouldn't be surprised if they also cut social security/medicaid/medi... and food stamps while they're at it. At least 2 million jobs and 215 Billion dollars of government spending will be vaporized. This stuff is all virtually guaranteed as time and time again congress has shown their extreme degrees of complacency and incompetence. The system is going to fail. Its just a matter of when.
This Hot Dividend Stock May Still Be Undervalued [View article]
I've been trading in and out of CLMT for years and here is my observations. The options simply aren't worth it because the market maker for this stock will RIP YOU OFF between the buy/ask as there are not enough orders to make it worth his while. Additionally, CLMT just bounced off 30 dollars twice on heavy volume on big market up days. I have a feeling they may be very over ripe for a big correction if they can't cleanly break the 30 dollar resistance line in short order.
Sirius XM : 70 Million Short Shares Covered Since July [View article]
It was very overbought and has been fixing that condition. Technically the stock looks good and is being accumulated. On any good news from Sirius or Liberty it will most likely pop and hard (that is what I'm betting on anyhow). Anyone still shorting could be in a world of hurt if the new bottom is anywhere near 2.50.
Using A Sell-Off To Pick Up This 10% Yielder On The Cheap [View article]
The stock did a recent decline for two reasons actually. It recently went ex-dividend AND it offered 6 million shares shortly thereafter. They are a well diversified company that recently increased payouts and have had more insider purchases. In addition to that Cramer rated them a sell which is a strong bullish indicator since that man cannot tell the difference between his ass and an ear of corn.
I Am Short American Capital Agency After Q1 Numbers [View article]
Let me see if I understand this. You're shorting a stock based solely on them paying large dividends and proclaiming that the current environment won't be favorable forever. Supposedly the environment will remain friendly to government backed MREITS until the end of 2014. If you're wrong you could end up paying 11 more dividends out before AGNC will significantly tank and even then its doubtful it will tank hard enough for you to reclaim your money; Not to mention AGNC could go even higher over the next couple of years putting you on the hook for lots and lots of losses. Your plan sounds well thought out. I would probably pull a "Dumb & Dumber" first. You know, the part where they're crying at the end and blowing their nose in $100 dollar bills.
A preliminary review by Michigan has found that Detroit has a "serious financial problem," with reporting problems causing cash-flow projections to significantly oscillate on a monthly basis. The review could lead to the declaration of a fiscal emergency and prompt the appointment of an emergency financial manager. A municipal filing for bankruptcy protection, the biggest in U.S. history, could ultimately ensue. (previous) [View news story]
Couldn't have happened to a nicer group of people.
Microsoft (MSFT) -3.8% premarket after the departure of Windows chief and putative heir apparent Steven Sinofsky. As to the reason for his exit, the spin room is open. One source tells Owen Thomas, Sinofsky threatened to quit if not given the CEO nod, and Ballmer called his bluff. Maybe not helping are tepid sales of Surface, which reportedly may only reach 60% of company forecasts by year end. [View news story]
Look at it as a good opportunity to buy in at 27.00 or sell puts.
Retirement Strategy - When The Risks Are Greater Than The Rewards [View article]
I like him because he appears to know what he is doing in different environments. The Fed buying MBS is a different environment. I agree that nobody knows the future and I'm not investing based on that. I'm simply sticking with my guns and trusting the people who run some of these Mreits more than others. I don't think I would be backing up the truck when AGNC was at 35/36 a share but at the 32 a share price range its pretty tempting. Who knows? Maybe the price will be 30 a share by the time I get my dividends and I can pickup some extra shares?
How Apple Gave Wall Street The Middle Finger [View article]
There's No Longer A Bernanke Put [View article]
This isn't just going to end with a market crash this time and increased prices like it did in 08/09. This time we will see massive hyperinflation, greatly increased food/oil prices, the decoupling of oil from the dollar, the dollar being kicked as the world's reserve currency, the government being forced to adhere to a budget and sever medicaid/medicare/social security & cut tens of thousands of more jobs (both federal & state), probably rioting and pillaging, and more. Lets try to predict what will happen when 45 Million people's food stamps get cut?
After Bernanke's statements and commitment to continue rigging the economy and propping it up it is inevitable. Its really just a question of when at this point. At what point do people lose "faith" in the dollar or what forces the government's hand first in cutting spending? Or maybe it will happen when the Federal Reserve starts unwinding their toxic dump of assets?
Why Microsoft Is Severely Undervalued [View article]
Facebook: Despite Big Price Drop, It Is Not A Compelling Value [View article]
In The Wake Of Annaly's Downgrade, It's Time To Consider Alternative Options [View article]
The Obama administration will ask Congress to raise the nation's borrowing limit by another $1.2T this week, marking the third and final increase from a deal reached over summer. Treasury officials note the increase is necessary because the government will approach within $100B of its current limit by Friday. [View news story]
Housing Starts, New Permits Rise Sharply In September: The Economy Isn't Deteriorating [View article]
Bush era tax cuts are expiring in a few months which will reduce a lot of people's incomes by 3% or more.
The fiscal cliff getting kicked again will cause catastrophic budget cuts to an already limping economy. Expect huge job cuts and more increases in taxes starting next year. I wouldn't be surprised if they also cut social security/medicaid/medi... and food stamps while they're at it. At least 2 million jobs and 215 Billion dollars of government spending will be vaporized. This stuff is all virtually guaranteed as time and time again congress has shown their extreme degrees of complacency and incompetence. The system is going to fail. Its just a matter of when.
This Hot Dividend Stock May Still Be Undervalued [View article]
Sirius XM : 70 Million Short Shares Covered Since July [View article]
Using A Sell-Off To Pick Up This 10% Yielder On The Cheap [View article]
I Am Short American Capital Agency After Q1 Numbers [View article]
A preliminary review by Michigan has found that Detroit has a "serious financial problem," with reporting problems causing cash-flow projections to significantly oscillate on a monthly basis. The review could lead to the declaration of a fiscal emergency and prompt the appointment of an emergency financial manager. A municipal filing for bankruptcy protection, the biggest in U.S. history, could ultimately ensue. (previous) [View news story]
Microsoft (MSFT) -3.8% premarket after the departure of Windows chief and putative heir apparent Steven Sinofsky. As to the reason for his exit, the spin room is open. One source tells Owen Thomas, Sinofsky threatened to quit if not given the CEO nod, and Ballmer called his bluff. Maybe not helping are tepid sales of Surface, which reportedly may only reach 60% of company forecasts by year end. [View news story]
Sirius XM Closes At $2.80 - Ready For More? [View article]
Retirement Strategy - When The Risks Are Greater Than The Rewards [View article]