MarvinMBA

Why Our Credit Crunch Mirrors the Weimar Hyperinflation from 1919-1923

Instead of comparing the present USA economic policies to past Germany lets look at the fundamentals that are here in the United States.
Textbook definitions and common sense suggest that money supply growth beyond GNP growth is inflationary.
Our money supply is the (money in circulations) times the velocity of the money. USA has been printing money and the reason it has not shown up yet as inflation is due to two things. 1) Banks and other institutions are hording money and limiting credit so that the velocity is practically zero. 2)The effect of stimulus takes about 12 months to work thru the system. If you take a look at M3 in Shadow Statistics you will see that M3 is climbing and were going to be in deep trouble sooner or later. There is no such thing as a free lunch and Treasuries are now paying zero is a bubble and this too will pop and interest rates will go sky high. Be prepared for super inflations and I said before we do not need to compare ourselves to Germany...OUR INFLATIONS IS GOING TO BE HOME GROWN....MarvinMBA

Low Gold Price a Buying Opportunity

I suppose when the world starts working again gold is bound to rise to compensate for the unbelievable money creation that is yet to show its ugly head. The money supply is related to velocity which has been practically zero so no matter how much the Fed prints, unless it starts jobs or lending we are held in check. Just as soon as we bottom out and job growth starts up GOLD is where the action is going to be...MarvinMBA

Friday's Options Recap

Trying to play this market is like walking thru a minefield...danger at every step...keep out for awhile as Uncle Sam is tries to revive a Economic Model that is DOA and resurrection is impossible...too bad but we are going to have to start a new economy all over...socialism anyone???

Trade Down Play - Cramer's Mad Money (10/15/08)

This is a good time to be out of the market. If you are not out already, the market is going to TAKE YOU OUT as the real economy and its negative outlook come into play....so take you choice...out yourself or be taken out as we go to under 5000.....MarvinMBA