Did U Think The Ponzi Scheme Would Last?'s Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.comuser/139583/comments http://seekingalpha.com/article/167013-nominal-vs-real-gains?source=feed#comment-718772 718772
That pie is no longer growing. Sure the fixed income business is as everyone tries to float new debt but soon enough there will be nobody who wants any part of other people's promises to pay because default rates will be extreme.]]> Sat, 17 Oct 2009 16:40:18 -0400
That pie is no longer growing. Sure the fixed income business is as everyone tries to float new debt but soon enough there will be nobody who wants any part of other people's promises to pay because default rates will be extreme.]]> http://seekingalpha.com/article/163177-spectrum-pharmaceuticals-undervalued-and-now-oversold?source=feed#comment-713734 713734

On Sep 25 06:43 PM Did U Think The Ponzi Scheme Would Last? wrote:
"Learn to read a stock chart. It peaked and is now in freefall.
Perhaps you forgot that it was 60 cents per share back in Oct 2008?"]]> Tue, 13 Oct 2009 09:31:46 -0400

On Sep 25 06:43 PM Did U Think The Ponzi Scheme Would Last? wrote:
"Learn to read a stock chart. It peaked and is now in freefall.
Perhaps you forgot that it was 60 cents per share back in Oct 2008?"]]> http://seekingalpha.com/article/165918-jim-rogers-on-the-next-10-years?source=feed#comment-713000 713000 Mon, 12 Oct 2009 10:13:54 -0400 http://seekingalpha.com/article/164745-bearish-on-banks-why-now-is-the-time-to-sell?source=feed#comment-704788 704788
"As for being over-bought; it is simply not true. $BKX was only
able to recover 30% of it's total losses from January 2007 to March
2009. Basically $BKX went down by 85.33% from it's Jan 2007 high
of $121 to Mar 2009 low of $17.75.

Today it is still selling at 62% discount from it's highs. That
is not an over-bought condition. So for longer-term hold; buying
$BKX or XLF at these levels is still buying at a discount of 62%.
You cannot be paying at an over-bought price with that kind of massive discount."

You talk like the highs were something other than a credit Ponzi. You make it sound as if it was normal for banking to be 25%+ of GDP. Don't you understand that they don't add any economic benefit? They are money changers, not producers of anything. They are scam artists and the scam is bust. They will NEVER return to their old highs and in fact they will be lucky to stabilize at 20% of their old highs once this depression really plays out.

Out of control fractional reserve banking was a scam that was allowed to run amok as long as it goosed the economy but now that banks won't loan and people won't borrow it is foolish to look for some return to the old days or anything close to it.]]> Tue, 06 Oct 2009 08:33:16 -0400
"As for being over-bought; it is simply not true. $BKX was only
able to recover 30% of it's total losses from January 2007 to March
2009. Basically $BKX went down by 85.33% from it's Jan 2007 high
of $121 to Mar 2009 low of $17.75.

Today it is still selling at 62% discount from it's highs. That
is not an over-bought condition. So for longer-term hold; buying
$BKX or XLF at these levels is still buying at a discount of 62%.
You cannot be paying at an over-bought price with that kind of massive discount."

You talk like the highs were something other than a credit Ponzi. You make it sound as if it was normal for banking to be 25%+ of GDP. Don't you understand that they don't add any economic benefit? They are money changers, not producers of anything. They are scam artists and the scam is bust. They will NEVER return to their old highs and in fact they will be lucky to stabilize at 20% of their old highs once this depression really plays out.

Out of control fractional reserve banking was a scam that was allowed to run amok as long as it goosed the economy but now that banks won't loan and people won't borrow it is foolish to look for some return to the old days or anything close to it.]]> http://seekingalpha.com/article/164890-e-trade-appears-ready-to-climb?source=feed#comment-704770 704770 Tue, 06 Oct 2009 08:15:25 -0400 http://seekingalpha.com/article/164295-cit-s-failure-could-threaten-financial-sector-s-overall-recovery?source=feed#comment-700492 700492
To call what has happened over the past 6 months a "recovery" is to not know your a$$ from a hole in the ground. Almost every important metric except tier 1 capital ratio has gotten much worse and the only reason that metric got "better" was accounting tricks enabled by the softening of mark to market rules.

The banking fundamentals have continued to implode lead by falling home prices and rising unemployment. Credit card defaults have increased and late or missing payment recidivism after mortgage "workouts" have proven to be the norm. The consumer is broke and not likely to recover any time soon. Boomers have finally started to worry about their retirements and so they are going to keep the cash they have and walk away from underwater homes.

Recovery? Suuuuuuure there has been a recovery. After all, didn't Bernanke and Geither and Obama tell us the "recession" is over? Anyone who believes this crap is a total patsy. ]]> Fri, 02 Oct 2009 14:28:18 -0400
To call what has happened over the past 6 months a "recovery" is to not know your a$$ from a hole in the ground. Almost every important metric except tier 1 capital ratio has gotten much worse and the only reason that metric got "better" was accounting tricks enabled by the softening of mark to market rules.

The banking fundamentals have continued to implode lead by falling home prices and rising unemployment. Credit card defaults have increased and late or missing payment recidivism after mortgage "workouts" have proven to be the norm. The consumer is broke and not likely to recover any time soon. Boomers have finally started to worry about their retirements and so they are going to keep the cash they have and walk away from underwater homes.

Recovery? Suuuuuuure there has been a recovery. After all, didn't Bernanke and Geither and Obama tell us the "recession" is over? Anyone who believes this crap is a total patsy. ]]> http://seekingalpha.com/article/163936-is-it-time-to-recognize-reality?source=feed#comment-697223 697223 "and the hot potato was passed back to the financial sector who once again promptly - hup hup, passed it to the FED, who in no time at all went deep and passed that hot spud to all the taxpayers."

I cringe when people talk about taxpayers in the US getting the brunt of the fallout because that is not where the brunt is really being felt. Taxpayers did not pay enough taxes to run the empire BEFORE the stimulus started. That's what they call running a deficit government. So while all of this unpayable debt may be getting placed onto the account of the US taxpayer, rest assured that someone else will be eating the bill.

I believe that the only hope of America maintaining its hegemony over the world (which is required in order to maintain the current quality of American life) is to start a preemptive war with China and then enslave its people. Do I want US to do this? HELL NO!! That's why I voted against the warmonger McCain because I could see that he was leaning in this direction (first bomb Iran and then increase US military presence in the area as a staging point for further conquest).

God help us all because Obama and Bush sure as Hell aren't.]]> Wed, 30 Sep 2009 15:01:58 -0400 "and the hot potato was passed back to the financial sector who once again promptly - hup hup, passed it to the FED, who in no time at all went deep and passed that hot spud to all the taxpayers."

I cringe when people talk about taxpayers in the US getting the brunt of the fallout because that is not where the brunt is really being felt. Taxpayers did not pay enough taxes to run the empire BEFORE the stimulus started. That's what they call running a deficit government. So while all of this unpayable debt may be getting placed onto the account of the US taxpayer, rest assured that someone else will be eating the bill.

I believe that the only hope of America maintaining its hegemony over the world (which is required in order to maintain the current quality of American life) is to start a preemptive war with China and then enslave its people. Do I want US to do this? HELL NO!! That's why I voted against the warmonger McCain because I could see that he was leaning in this direction (first bomb Iran and then increase US military presence in the area as a staging point for further conquest).

God help us all because Obama and Bush sure as Hell aren't.]]> http://seekingalpha.com/article/163444-you-can-spend-your-way-out-of-a-recession?source=feed#comment-692829 692829
Problem is, we have been doing it for 30 years and it is now time to pay the piper. The credit Ponzi is bust and there is no reflating it because the social mood regarding having a bunch of debt and no savings has changed. This is the new reality.]]> Sun, 27 Sep 2009 08:13:29 -0400
Problem is, we have been doing it for 30 years and it is now time to pay the piper. The credit Ponzi is bust and there is no reflating it because the social mood regarding having a bunch of debt and no savings has changed. This is the new reality.]]> http://seekingalpha.com/article/163177-spectrum-pharmaceuticals-undervalued-and-now-oversold?source=feed#comment-691458 691458
The whole stock market is a Ponzi scheme and there are few credible valuation metrics except what dividend is being paid and how safe it is. Spectrum has neither dividend nor safety. It's bleeding cash at a time when future financing is very uncertain. The days of writing a business plan and receiving perpetual funding without profitability are OVER.]]> Fri, 25 Sep 2009 18:43:39 -0400
The whole stock market is a Ponzi scheme and there are few credible valuation metrics except what dividend is being paid and how safe it is. Spectrum has neither dividend nor safety. It's bleeding cash at a time when future financing is very uncertain. The days of writing a business plan and receiving perpetual funding without profitability are OVER.]]> http://seekingalpha.com/article/160619-the-coming-consequences-of-banking-fraud?source=feed#comment-669885 669885

On Sep 09 10:42 AM Roger Knights wrote:

> "transactions that have been kept secret from the world, and that
> will have severe and negative consequences"
>
> The Portrait of Dorian Grey--hidden in the attic.]]> Thu, 10 Sep 2009 06:20:31 -0400

On Sep 09 10:42 AM Roger Knights wrote:

> "transactions that have been kept secret from the world, and that
> will have severe and negative consequences"
>
> The Portrait of Dorian Grey--hidden in the attic.]]> http://seekingalpha.com/article/159009-u-s-markets-flash-strong-warning-signals?source=feed#comment-654103 654103
It is inevitable that, deprived of its energy source, a Ponzi scheme must collapse. Anything which must happen will happen. The only variable is the timing.

I ask again, did u think the ponzi scheme would last forever?]]> Mon, 31 Aug 2009 00:23:13 -0400
It is inevitable that, deprived of its energy source, a Ponzi scheme must collapse. Anything which must happen will happen. The only variable is the timing.

I ask again, did u think the ponzi scheme would last forever?]]> http://seekingalpha.com/article/158964-dollar-update-inflation-forces-are-brewing?source=feed#comment-653725 653725
Second, the USD is the world's senior currency and in a deflationary crash it will strengthen. We already saw this begin to happen during the 1st wave of the crash. The second wave of the crash was actually a rally which weakened the dollar. Now we will see an even stronger run into the dollar as the third wave of the crash rolls in. This one is going to leave a mark.]]> Sun, 30 Aug 2009 15:23:54 -0400
Second, the USD is the world's senior currency and in a deflationary crash it will strengthen. We already saw this begin to happen during the 1st wave of the crash. The second wave of the crash was actually a rally which weakened the dollar. Now we will see an even stronger run into the dollar as the third wave of the crash rolls in. This one is going to leave a mark.]]> http://seekingalpha.com/article/158328-european-economics-can-t-break-the-dollar-deadlock?source=feed#comment-647265 647265
The greenback will strengthen as all the global, dollar denominated debt fails. ]]> Wed, 26 Aug 2009 10:55:37 -0400
The greenback will strengthen as all the global, dollar denominated debt fails. ]]> http://seekingalpha.com/article/157823-letter-to-her-majesty-suggestion-for-low-tech-apparatus-for-economic-horizon-scanning?source=feed#comment-643200 643200
"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

—Thomas Jefferson, The debate over the recharter of The Bank Bill, (1809)

WAKE UP AMERICA! Stop making it so complicated. It's a fvcking SCAM, always has been, always will be until we return to honest money and do away with fictional reserve banking.]]> Mon, 24 Aug 2009 10:10:37 -0400
"I believe that banking institutions are more dangerous to our liberties than standing armies . . . If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] . . . will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered . . . The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."

—Thomas Jefferson, The debate over the recharter of The Bank Bill, (1809)

WAKE UP AMERICA! Stop making it so complicated. It's a fvcking SCAM, always has been, always will be until we return to honest money and do away with fictional reserve banking.]]> http://seekingalpha.com/article/95320-current-market-turmoil-you-cant-explain-stupid?source=feed#comment-637840 637840

On 2008 Sep 16 02:16 PM regeya wrote:

> Ponzi Scheme, feel free to send as much of your worthless paper to
> me as possible!
>
> Honestly, is it just me or do the von Mises followers sound like
> anti-Marxists?]]> Thu, 20 Aug 2009 09:42:22 -0400

On 2008 Sep 16 02:16 PM regeya wrote:

> Ponzi Scheme, feel free to send as much of your worthless paper to
> me as possible!
>
> Honestly, is it just me or do the von Mises followers sound like
> anti-Marxists?]]> http://seekingalpha.com/article/125914-mark-to-market-the-bogeyman-of-the-1930s-is-back?source=feed#comment-635679 635679
Those who want to quash M2M believe that everyone is as stupid as they are; that you can fool all the people all the time and than a scam can go on without end.

Sweeping the cat $hit under the rug does not make it go away. It simply ensures that a mess that you should have held your nose and cleaned up immediately is allowed to stink and fester endlessly. It is an attempt to avoid doing the right thing so that someone else will have do do it later for you. It is dishonest and immoral as it generally means that folks who had nothing to do with creating the mess are now left to clean it up. It is an attack on the financial prosperity of our children. It is selfish and sinful.

Just because something appears to work does not make it right. Madoff's con appeared to work for a long time as did Enron, LTCM and all the other obvious Ponzis. The credit Ponzi days are numbered. It's time to man up and do the right thing before it turns into WW3.]]> Tue, 18 Aug 2009 20:21:19 -0400
Those who want to quash M2M believe that everyone is as stupid as they are; that you can fool all the people all the time and than a scam can go on without end.

Sweeping the cat $hit under the rug does not make it go away. It simply ensures that a mess that you should have held your nose and cleaned up immediately is allowed to stink and fester endlessly. It is an attempt to avoid doing the right thing so that someone else will have do do it later for you. It is dishonest and immoral as it generally means that folks who had nothing to do with creating the mess are now left to clean it up. It is an attack on the financial prosperity of our children. It is selfish and sinful.

Just because something appears to work does not make it right. Madoff's con appeared to work for a long time as did Enron, LTCM and all the other obvious Ponzis. The credit Ponzi days are numbered. It's time to man up and do the right thing before it turns into WW3.]]> http://seekingalpha.com/article/156547-six-companies-with-sustainable-dividends?source=feed#comment-634431 634431 Tue, 18 Aug 2009 08:18:26 -0400 http://seekingalpha.com/article/156250-inflation-vs-deflation-a-matter-of-money-supply-and-demand?source=feed#comment-631553 631553 Sun, 16 Aug 2009 09:20:45 -0400 http://seekingalpha.com/article/156250-inflation-vs-deflation-a-matter-of-money-supply-and-demand?source=feed#comment-631549 631549

On Aug 16 08:34 AM CLH wrote:

> How can people carry on such a meaningless discussion--inflation
> and deflation? Debt elimination always destroys money. The small
> amount the Fed prints has no effect because it is never used.
>
> Dollar up and gold and commodities down --big time.]]> Sun, 16 Aug 2009 09:17:37 -0400

On Aug 16 08:34 AM CLH wrote:

> How can people carry on such a meaningless discussion--inflation
> and deflation? Debt elimination always destroys money. The small
> amount the Fed prints has no effect because it is never used.
>
> Dollar up and gold and commodities down --big time.]]> http://seekingalpha.com/article/156250-inflation-vs-deflation-a-matter-of-money-supply-and-demand?source=feed#comment-631543 631543
Each time a loan is offered and debt is accepted, the money supply grows. Ever since Greenspan effectively removed all the safeties to allow his banking pals to lever up and get rich quick, many institutions are levered 30, 40, 50. BSC was 32% and FNM/FRE are around 50% (a number I read, I did not do the math myself but I believe it given they are both massive Ponzi schemes).

Now that all the credit/debt is out there the economy is crashing because anyone who was going to take on debt has done so and now everyone it rushing to pay it off or to default on it. Both of these acts has the effect of reducing the money supply. This is the very definition of a deflationary collapse.

So you see, the fed is largely out of control of the money supply at this point because if banks will not lend and people will not borrow then there is no way the fed can print up enough money to make up for the dwindling credit portion of the money supply. Bernanke tried, but China told him to stop "or else". Everything else beyond these basic facts falls to the level of importance of noise in the equation. Bernanke is cutting off the QE in Oct. Guess what that means?]]> Sun, 16 Aug 2009 09:15:41 -0400
Each time a loan is offered and debt is accepted, the money supply grows. Ever since Greenspan effectively removed all the safeties to allow his banking pals to lever up and get rich quick, many institutions are levered 30, 40, 50. BSC was 32% and FNM/FRE are around 50% (a number I read, I did not do the math myself but I believe it given they are both massive Ponzi schemes).

Now that all the credit/debt is out there the economy is crashing because anyone who was going to take on debt has done so and now everyone it rushing to pay it off or to default on it. Both of these acts has the effect of reducing the money supply. This is the very definition of a deflationary collapse.

So you see, the fed is largely out of control of the money supply at this point because if banks will not lend and people will not borrow then there is no way the fed can print up enough money to make up for the dwindling credit portion of the money supply. Bernanke tried, but China told him to stop "or else". Everything else beyond these basic facts falls to the level of importance of noise in the equation. Bernanke is cutting off the QE in Oct. Guess what that means?]]> http://seekingalpha.com/article/145928-why-the-dow-is-headed-to-6000?source=feed#comment-593978 593978 > Elliott Wave International are a lot more pessimistic than you, and
> unfortunately they are very, very good at forecasting.

I want to make sure people get the full story behind your post. While EWI is indeed predicting a very dire long term outcome with the Dow going well sub 2k, they also believe that this sucker's rally will hit a higher high this year before it enters Primary 3 down (AKA the big wipe out). They know that stocks don't go straight up or straight down. They predicted this sucker's rally almost to the freaking day.]]> Sun, 19 Jul 2009 14:48:01 -0400 > Elliott Wave International are a lot more pessimistic than you, and
> unfortunately they are very, very good at forecasting.

I want to make sure people get the full story behind your post. While EWI is indeed predicting a very dire long term outcome with the Dow going well sub 2k, they also believe that this sucker's rally will hit a higher high this year before it enters Primary 3 down (AKA the big wipe out). They know that stocks don't go straight up or straight down. They predicted this sucker's rally almost to the freaking day.]]> http://seekingalpha.com/article/149569-six-signs-economy-is-turning-the-corner?source=feed#comment-593958 593958
Let me give you another hint. The trend for the markets and the economy is still down. This is but a monster sucker's rally within the broader meltdown but within 2-3 months the meltdown will resume. Elliott wave followers call this rally Primary 2 and they predicted it would happen in advance and then called the start of it nearly to the day. Folks like Prechter said it would be the biggest rally of the meltdown yet and that it would fool many sheeple into believing the meltdown was over. In reading your post I guess he was right again.

After Primary 2 ends will come Primary 3 - a massive collapse which will lead to lower lows. It will occur because the debt that has already gone bad and yet has been hidden on bank balance sheets will begin to stink so badly that no amount of kitty litter will cover it up. Once the stench becomes unmaskable then the truth will come out and it will crash the system. Again, the debt is already bad its just that accounting tricks have been allowed to cover it up and kick the can down the road. But you can't fool all the sheeple all the time and sheeple are beginning to awaken.

Just remember back to the crash of 29-32 and all the times that people thought it was bottoming and turning around. Each time they were wrong.

Welcome to the great depression of 2009.]]> Sun, 19 Jul 2009 14:28:38 -0400
Let me give you another hint. The trend for the markets and the economy is still down. This is but a monster sucker's rally within the broader meltdown but within 2-3 months the meltdown will resume. Elliott wave followers call this rally Primary 2 and they predicted it would happen in advance and then called the start of it nearly to the day. Folks like Prechter said it would be the biggest rally of the meltdown yet and that it would fool many sheeple into believing the meltdown was over. In reading your post I guess he was right again.

After Primary 2 ends will come Primary 3 - a massive collapse which will lead to lower lows. It will occur because the debt that has already gone bad and yet has been hidden on bank balance sheets will begin to stink so badly that no amount of kitty litter will cover it up. Once the stench becomes unmaskable then the truth will come out and it will crash the system. Again, the debt is already bad its just that accounting tricks have been allowed to cover it up and kick the can down the road. But you can't fool all the sheeple all the time and sheeple are beginning to awaken.

Just remember back to the crash of 29-32 and all the times that people thought it was bottoming and turning around. Each time they were wrong.

Welcome to the great depression of 2009.]]> http://seekingalpha.com/article/149586-goldman-s-success-put-down-those-pitchforks?source=feed#comment-593934 593934
So normal is where banks should make outsized profits for producing nothing of value for the economy while handing us all outsized risk that is guaranteed to blow up in our faces some day. Is that what you are saying?

People like you do not know what a real economy is supposed to look like and thus you think this is normal. The 50s were a real economy and banking was a 3-5% dividend business. They were not superstars. They were stodgy and glassy eyed and careful and conservative. Now we have been sheeplized to believe that cowboy banking is normal.

This will end badly because there are too many people like you that have not one clue as to what is right and sustainable and what is wrong and guaranteed to blow up in our faces.]]> Sun, 19 Jul 2009 13:59:55 -0400
So normal is where banks should make outsized profits for producing nothing of value for the economy while handing us all outsized risk that is guaranteed to blow up in our faces some day. Is that what you are saying?

People like you do not know what a real economy is supposed to look like and thus you think this is normal. The 50s were a real economy and banking was a 3-5% dividend business. They were not superstars. They were stodgy and glassy eyed and careful and conservative. Now we have been sheeplized to believe that cowboy banking is normal.

This will end badly because there are too many people like you that have not one clue as to what is right and sustainable and what is wrong and guaranteed to blow up in our faces.]]> http://seekingalpha.com/article/148959-investing-in-shipping-stocks-maximum-pessimism-is-here?source=feed#comment-590586 590586 Thu, 16 Jul 2009 12:06:07 -0400 http://seekingalpha.com/article/148412-gm-shares-just-won-t-quit?source=feed#comment-587942 587942
Until they stop people from trading they will trade because this is all gambling now, not investing. You want more evidence that this is all just gambling? You can trade based on how much rainfall you expect or chances of snow. Are there any tangible assets associated with that? NO! It's just gambling like the rest of the ponzi stock market. It will collapse in a couple years as all the suckers get completely fleeced and start to figure out there are better ways to spend one's hard earning money than in a corrupt gambling pit which is lined with preordained winners backed by the government.]]> Tue, 14 Jul 2009 14:53:26 -0400
Until they stop people from trading they will trade because this is all gambling now, not investing. You want more evidence that this is all just gambling? You can trade based on how much rainfall you expect or chances of snow. Are there any tangible assets associated with that? NO! It's just gambling like the rest of the ponzi stock market. It will collapse in a couple years as all the suckers get completely fleeced and start to figure out there are better ways to spend one's hard earning money than in a corrupt gambling pit which is lined with preordained winners backed by the government.]]> http://seekingalpha.com/article/148232-no-one-saw-this-economic-crisis-coming?source=feed#comment-584954 584954

On Jul 12 06:57 PM mkreisel wrote:

> That book came out exactly at the bottom of the previous bear market,
> October 2002.
>
> Those who went short back then would have their pants margin called
> as early as July 2003.]]> Sun, 12 Jul 2009 19:22:30 -0400

On Jul 12 06:57 PM mkreisel wrote:

> That book came out exactly at the bottom of the previous bear market,
> October 2002.
>
> Those who went short back then would have their pants margin called
> as early as July 2003.]]> http://seekingalpha.com/article/148232-no-one-saw-this-economic-crisis-coming?source=feed#comment-584949 584949
"Bezemer contends that the problem is that economic policy is executed using macro equilibrium models and what is needed to establish economic policy that can anticipate crises, such as we have now, and take actions to head them off, are micro accounting cash-flow models."

Sooooo, they have figured it all out now. This experiment didn't work. What we need is some OTHER government intervention experiment. What crock of $hit. The government needs to stay the fvck out of the economy and stick to enforcing the constitution. The free market will fix everything once the government promises and crutches are removed.

Will people never figure out what a gigantic GD scam this whole thing is???

PATSIES!!!]]> Sun, 12 Jul 2009 19:20:00 -0400
"Bezemer contends that the problem is that economic policy is executed using macro equilibrium models and what is needed to establish economic policy that can anticipate crises, such as we have now, and take actions to head them off, are micro accounting cash-flow models."

Sooooo, they have figured it all out now. This experiment didn't work. What we need is some OTHER government intervention experiment. What crock of $hit. The government needs to stay the fvck out of the economy and stick to enforcing the constitution. The free market will fix everything once the government promises and crutches are removed.

Will people never figure out what a gigantic GD scam this whole thing is???

PATSIES!!!]]> http://seekingalpha.com/article/141015-as-cool-as-silver?source=feed#comment-583914 583914
> I think we could run to the old high of $50/ounce in the next
> economic cycle. Since silver can trade with double the
> volatility of gold, this forecast could prove conservative.]]> Sat, 11 Jul 2009 19:49:52 -0400
> I think we could run to the old high of $50/ounce in the next
> economic cycle. Since silver can trade with double the
> volatility of gold, this forecast could prove conservative.]]> http://seekingalpha.com/article/147852-natural-gas-etf-nowhere-to-go-but-up-yet-it-keeps-going-down?source=feed#comment-582976 582976
Are you listening? The debt that the banks have been allowed to push into the money supply has inflated it FAR more than the fed could ever hope to. And now that debt is going bad. When the debt is written off, the money supply shrinks. Period. The fed has no control over it because the debt is a couple orders of magnitude larger than what the fed can print up.

Some people think the fed can just print forever. China, apparently, does not agree. They made it clear to Geithner recently that he would not be allowed to do this without interest rates skyrocketing. If that is allowed to happen, home sales will plummet and housing prices will follow them down. This will trash the banks who are trying to hold the debt associated with overpriced homes on their books as if it will some day return to 2006 valuations. If interest rates go to 10% or more, home prices could see 1985 values.

It's a catch 22 and the result is deflation. The fed is caught between a rock and a hard case (China). Commodities have rolled over for the next wave down.]]> Fri, 10 Jul 2009 20:03:27 -0400
Are you listening? The debt that the banks have been allowed to push into the money supply has inflated it FAR more than the fed could ever hope to. And now that debt is going bad. When the debt is written off, the money supply shrinks. Period. The fed has no control over it because the debt is a couple orders of magnitude larger than what the fed can print up.

Some people think the fed can just print forever. China, apparently, does not agree. They made it clear to Geithner recently that he would not be allowed to do this without interest rates skyrocketing. If that is allowed to happen, home sales will plummet and housing prices will follow them down. This will trash the banks who are trying to hold the debt associated with overpriced homes on their books as if it will some day return to 2006 valuations. If interest rates go to 10% or more, home prices could see 1985 values.

It's a catch 22 and the result is deflation. The fed is caught between a rock and a hard case (China). Commodities have rolled over for the next wave down.]]> http://seekingalpha.com/article/147420-dear-world-please-stop-lending-the-u-s-money?source=feed#comment-577487 577487
Now before you start rolling your eyes, listen up. The fed controls the monetary base but it doesn't control the credit. At least not anymore since Greenspan essentially removed most of the reserve requirements in our fractional reserve lending system. The monetary base - the only part the fed controls - is only 10% of the money supply. The rest of it is debt. As this debt is destroyed, the money supply shrinks and does so faster than the fed can print.

A reduction in the money supply relative to goods and services is deflation. As usual, the main stream media and CNBC watchers have it all wrong. You can see deflation kicking in with falling silver and gold and oil prices. If this were an inflationary environment gold would be putting in higher highs, not a declining double top.]]> Tue, 07 Jul 2009 14:34:59 -0400
Now before you start rolling your eyes, listen up. The fed controls the monetary base but it doesn't control the credit. At least not anymore since Greenspan essentially removed most of the reserve requirements in our fractional reserve lending system. The monetary base - the only part the fed controls - is only 10% of the money supply. The rest of it is debt. As this debt is destroyed, the money supply shrinks and does so faster than the fed can print.

A reduction in the money supply relative to goods and services is deflation. As usual, the main stream media and CNBC watchers have it all wrong. You can see deflation kicking in with falling silver and gold and oil prices. If this were an inflationary environment gold would be putting in higher highs, not a declining double top.]]>