sbenard

Why Did Geithner Duck the Question?

Interesting article, but what I would like to seed/request from this community is a discussion about the longer-term consequences of this quantitative easing strategy.

It just doesn't seem to me to make sense that we can just keep printing money to buy our own debt without limit. It just looks, smells, and feels like a ponzi scheme and house of cards to me.

What do you all see as the consequences of this scheme if it DOESN'T work? What if investors all flee U.S. government debt, and ONLY the Fed buys it? Would that be the beginning of the end?

Rick Santelli Takes Down Jim Cramer

I am a Rick Santelli fan. He is the only good thing on CNBC.

VIX ETNs Show the Importance of Knowing What You Trade

Apparently, the symbol VXY was released as VXZ instead?

The Rise of an Epic Financial Crisis

I've read "Empire of Debt" cover to cover. It was a fascinating read in history. However, the entire book can be summed up by the last sentence of the book:

"And buy gold."

It's a little too simplistic for me.

Another Big Bank Failure: More Likely Than Not to Occur

The Fed is printing too much, Congress is spending too much, and the Treasury is borrowing too much. That is all I need to know to be certain the end will be UGLY!

2009: Expecting a Massive Rally

As earnings surprised continue to arrive to the downside, the indexes must also continue to fall in tandem. John Mauldin, ranked in 2007 and the world's best investment adviser, 2nd only to Warren Buffett, recently suggested in his newsletter that because of new hedge funds liquidations and downward earngins revisions, the S&P 500 will need to drop an additional 32% in early 2009. More pain coming!

Another Big Bank Failure: More Likely Than Not to Occur

The entire banking system is insolvent, not just a handful of banks. Even the FDIC is insolvent. It simply doesn't have the funds in its trust to cover the deposits it insures. It is inevitable that more big banks will fail, and eventually, we will all wake up to the reality that the government can't cover it all. Who is going to bail out the government? We have seen the enemy, and unfortunately, the enemy is US!

Why Gold Hasn't Been a Hedge Against Inflation

My gold bug buddies are going to want to send you to the guillotine, John!

With 75bp Cut, Fed Becomes the Most Aggressive Central Bank

Despite the CPI today, anyone who has looked at most commodity charts since Dec 1st knows that the CPI was old news. Commodities have started to move higher again, and the steeper the decline of the Dollar, the more pronounced the commodity price increases must be to compensate for the currency devaluation. Just look at the lastest commodity charts (I've posted some today to my blog) and there can be no doubt that the fires of inflation are stoking again!

With 75bp Cut, Fed Becomes the Most Aggressive Central Bank

The carry trade is back on, but this time, instead of the yen, they'll be borrowing the Dollar and shipping the funds everywhere else.

Leveraged ETFs Might Be the Cause of Late Day Trading Moves

I've noticed this same phenomenon, and like the large trading desks, I have been taking advantage of the increased volatility at the end of the day. It's a good strategy. However, volatility is a double-edged sword, and if caught on the wrong side of the trade, can be costly. I keep very tight stops at these hours of the day, and I get out very quickly once the momentum fades.

What Wall Street Fraud Means for ETFs

I'm not convinced that I see sufficient correlation between your explanation and the two ETFs you've highlighted. Spain and France? That strikes me as a rather weak correlation!

Which ETFs Will Benefit from a Rate Cut?

Good choices. Also, since 70% of the US Dollar Index is related to the Euro, and the ECB has now signalled that their easing cycle is near an end, the Euro is once again rising firmly against the Dollar.
I am concern that US treasuries have risen too far and are now in bubble territory. I am prepared to short treasuries when the time and my indicators tell me the time is right.

Hedging Bets by Going Long and Short

I have been using the LSC ETF. I like it because it can take both long and short positions in a single fund. It has continued to rise steadily even during the commodity bloodbath.
If it has one weakness, it is that it only rebalances once a month. I check my charts every day!

Second Carbon Exchange-Traded Product Makes It to Market

Thanks for the info. SInce the fund uses EU futures contracts collateralized by US government bonds, it is genuinely different from GRN. It already -- in 2 days of trading -- has better volume than GRN.