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This Game is so Rigged

This Game is so Rigged
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  • The Fed is "better informed than anybody else," RBS strategist William O'Donnell advises; its "vast and highly accomplished staff in Washington exceeds anything else the Street can bring... go with the strength, go with the staff and go with the Fed." Is this is the same Fed that urged adoption of ARMs on the eve of short rates going from 1% to 5%, failed to see the housing bubble and said "subprime was contained"?  [View news story]
    Yes, but in the Fed members' defense; they get drivers, towncars and terrific health insurance. You'd cling to the ideology too.

    Also, let's not forget that they're crooked (like the Fed member who had to resign because he bought GS stock before the bailout was announced, but after he already knew it was coming).

    They can all rot in hell.
    Nov 29, 2010. 06:35 PM | 18 Likes Like |Link to Comment
  • Don't believe all the hype - we needed those bailouts! Becky Quick says we've already forgotten about the fall 2008 fear and why the government had to step in, and "the armchair-quarterback lawmakers and candidates who are now second-guessing these moves are dangerous."  [View news story]
    "We needed those bailouts," she said; while wiping the Oracle of Omaha's Kool-aid from her chin.

    What she meant to say was, "all my friends at GE and Berkshire needed that bailout."
    Jul 16, 2010. 08:15 PM | 16 Likes Like |Link to Comment
  • The robo-market blew a fuse and must be re-wired, Colin Barr writes. Among the suggestions for minimizing abusive automated trading: widen out bid-ask spreads, slap a fee on traders who cancel trades, and change the practice of paying traders for providing liquidity. "We need to get all these fast-trading jokers out of here."  [View news story]
    Nobody complains when these robots push the market to levels that are overvalued beyond any reason. What was it, 8 straight weeks with 30 something straight Mondays of up moves on ZERO volume. High Frequency Trading provides nothing (other than an algorithmic push higher on no volume). When you want to sell, they disappear.

    Nothing needs to be rewired. The market is overvalued by 50% anyway. REITs at 4.5 times book? Really? And book is overstated by 100%. During good times they shouldn't trade at more than 1.5 times.

    May 7, 2010. 07:22 PM | 14 Likes Like |Link to Comment
  • It hardly matters what Geithner says when seven out of every 10 voters say they oppose raising the debt ceiling, Stan Collender writes. "This almost certainly means that most representatives and senators will need to vote against a debt ceiling bill at least once so that they have something on the record showing their constituents that they were with them."  [View news story]
    Such a bunch of crap. Happens once a decade in California. They shut down a few State Parks (for the media to send reporters out and interview unhappy tourists) and pay State employees in IOU's (which are accepted at Cali Banks 100 cents on the dollar). Nothing bad happens. Just political posturing.

    They'll close the Washington Monument; then interview school kids who don't get to go inside. Also, expect the VA to pretend to close some non-essential medical services - that way Timmy effects "those that have served their country" which puts all of us at risk (not really, but it's good for show). It's all such propaganda; it's really shocking that anyone thinks anything is going to change because of a "debt ceiling".

    How do we get the Bernank to stop monetizing the debt and then get him to stop lying about how he does it (because JP Morgan - and other PDs - collude with the him to sell the shit they buy a week later). That is the real question.
    Apr 20, 2011. 07:56 PM | 13 Likes Like |Link to Comment
  • Considering Ayn Rand's philosophy holds that laissez-faire capitalism is "the only moral social system," it's not surprising that Ayn Rand Institute's Yaron Brook thinks the economy is sputtering because the U.S. government's response to the 2008 crisis was too heavy-handed. "We should have let banks fail, let auto companies fail [and] let housing prices tank to reach their true bottom."  [View news story]

    The second to last chapter of Atlas Shrugged describes the germination our descent. The government struggles to continue to coerce the real working people into supporting not only the 50% that pay no income tax (and the 48 million on food stamps); but also the parasitic bureaucracy which lives upon our effort.

    The gov absolves $60billion in GM debt with no recourse to bond holders so that the union can continue to deliver votes. To big to fail, will become illegal to fail (as Rand predicted).

    Just think, if Goldman Sachs were allowed to go under - there would no longer be sunlight or oxygen. Clearly our leaders are looking out for our best interest.

    Rand rules. Bernank and Greenspan will descend into history as goats of the Republic.
    May 9, 2011. 08:58 PM | 10 Likes Like |Link to Comment
  • The IMF needs to set up a leadership plan with its boss "obviously not in the position" to run it, Tim Geithner says in his first comment on Dominique Strauss-Kahn's arrest. Jockeying is already under way, with emerging-markets nations stumping for their representatives, Europe wanting a continental, and the U.S. still the fund's biggest single shareholder. (IMF news)  [View news story]
    Does anyone else have a problem with the head of the French Socialist Party staying in a suite that's $3,000 per night?

    He should have spent $500 for the room and gotten a Spitzer girl with the difference.

    The hubris is just disgusting.
    May 17, 2011. 08:08 PM | 9 Likes Like |Link to Comment
  • The Treasury sold 358M shares of General Motors (GM) in the automaker's IPO, raising $11.8B and reducing its stake to just under 37% - but if underwriters exercise options to cover overallotment, the total Treasury sale will be 412M shares for $13.6B and a stake reduction to 33.3%. The agency now reportedly plans to reduce - but not eliminate - its oversight role, and it agreed to a six-month lockup, which will dictate whether it will break even on a $40B investment.  [View news story]
    What about the $60Bil that the gov wiped out from the bond holders (who deserved the liquidation rights)?? Break even my ass.
    Nov 17, 2010. 08:08 PM | 8 Likes Like |Link to Comment
  • Existing Home Sales Haven't Fallen, Despite Gloomy Punditry [View article]
    FYI and totally subjective (so don't barage me with a plethora of responses just because you don't agree).

    Anecdotally speaking, my friend sells REO properties (on behalf of lenders) in Southern California – and says, “They’re not putting 90% of the non-performing sh*t that’s on their books on the market. They’re just sitting on it and waiting.”

    Waiting for what (inflation perhaps?). Reminds me of Japan. BTW we already had the lost decade as well. S&P500 June '99 = 1315. June '09 = 900. It's not a decade, it's a generation.
    Jun 23, 2009. 10:09 PM | 6 Likes Like |Link to Comment
  • Simon Johnson's opinion that the US will face a funding crisis is shared by many. A competing view says since the US creates its currency, treasury issuance is not a government finance operation, but simply a tool for influencing the money supply. The US is not reliant on China or anyone else to purchase its debt.  [View news story]
    The "competing view" is so flawed and filled with erudite bullshit that it's almost impossible to address logically. It defines the "professorial" ideal and is based in fantasy land where countries start from scratch, without history - but with plenty of tax. The very idea that taxes create demand for federal reserve notes ignores the 200 years before the notes were created where people paid taxes with specie, notes backed by gold/silver, wheat, grain and other TANGIBLE medium. Was grain created to pay tax, or to eat? I'm so fed up (pun intended) I could write 10 pages illuminating the flaws in the competing view.
    Dec 23, 2010. 12:39 PM | 5 Likes Like |Link to Comment
  • My 10 Predictions for 2010 [View article]
    Well, on the west coast, we're freezing. Global Warming isn't a hoax, it's a religion. I guess, in 2020, when Florida isn't underwater, you'll say, "it's because of the work/praying we've been doing."

    On Dec 30 12:07 AM mrxg4 wrote:

    > "The threat of global warming is also greatly exaggerated by the
    > politicians and media. People still remember in the 1970s, everyone
    > was told by the politicians and media that the earth temperature
    > was dropping and mankind was back to the ice age. Only 3 decades
    > later, we are told the opposite. The reality is that human beings
    > don’t have control and can’t do anything about earth’s temperature
    > either cold or warm, up or down. It is just another example of hypocrisy
    > and political correctness at work, wasting tons of money along the
    > way."
    > I'm baffled how logical individuals with access to an incredible
    > amount of data can still believe that global warming is merely a
    > hoax.
    Dec 30, 2009. 12:31 AM | 5 Likes Like |Link to Comment
  • Concur. Two parties - both the same. The Republicans pretend it's about fiscal responsibility, but really are only interested in usurping individual rights. The Democrats pretend it's about the right to choose, but really are only interested in being first among equals in a perfect socialist society where everyone is above average. Every Pres. is pre-approved via CFR, regardless of party affiliation. They are the true party.

    On Jun 04 09:23 PM Market Sniper wrote:

    > Yes, financial imprudence has been all the rage and should NOT be
    > rewarded regardless of individual circumstance. But that is the way
    > it works nowdays. I find it highly amusing that some still believe
    > that we actually vote for the people set in place that suposedly
    > call the shots. When we have a presidential election where BOTH party's
    > candidates are pre-selected, you have to wonder. I detest Statists
    > of all stripes, regardless of what wing of the Demopublican Party
    > they belong. I have little doubt that had John McCain been elected,
    > much today would be different.
    Jun 4, 2009. 09:29 PM | 5 Likes Like |Link to Comment
  • Gold Too Variable to Be a Currency [View article]
    Sheik, come on man. You're a smart guy, but you're on the recent history of this argument.

    "The price of an ounce of gold was fixed at $20.67 for many decades until 1934 at which point the price was raised to $35.00. In 1968 a two-tiered pricing structure was established, and by 1975 the price of gold was allowed to fluctuate." You can't use 1940 to 1960 for comparison to anything. That's a fingernail clipping in history. Of course "stuff" tripled v. gold in the 1950's. It was prix fixe. Gold was artificially cheap.

    Like we argued previously - the reason gold declined in the 80's & 90's was because "after-inflation interest rates" were excessive. That's the only way to get people to hate gold. Owning gold seems stupid when you can get 20% in your overnight CD's. But when the government is debasing your savings by printing 2.5 trillion pieces of paper and lying about it, as well as not offering interest on their paper - gold is a great investment. It is a measure of wealth which hard to print.

    Additionally, the coinage act of 1792 established what a dollar was supposed to be - 24 grams of Gold. Only when it became inconvenient in the mid 1800's did they subvert the original value of a dollar. It wasn't until FDR that they completely f*cked the American people in exchange for central government; and then Nixon who ditched the exchange of dollars for gold (at $35 per ounce - which even at that cheap price, the central government could no longer afford).

    After which; gold promptly shot up to $125 then about $250 for nearly a decade.

    If the US offered 18% interest rates tomorrow - gold would drop like the lead weighted shiny metal it is. However, since Bukake has a printing press and no desire to raise interest rates, and Timmy is not afraid to Ben's printing press - gold will slowly replace the dollar as the safe-haven refuge (one could argue it already has - although it didn't hold true in November 2008).

    I always enjoy your comments; and the nice part is one of us will find out who's right in the next 5 years, or so.
    May 25, 2011. 07:49 PM | 4 Likes Like |Link to Comment
  • The Online Money Show: 4 Reasons the Silver Bubble Should Continue to Deflate [View article]

    Your argument stems from the belief that the Dow produces "real earnings". It's a bit like saying the "box office for Hollywood" went up this year. Yes, of course revenues increased - because they raised ticket prices in green rectangles of paper. However, attendance peaked in the early 1930's. And that's with a third the population.

    Since there are approximately 4.5 billion ounces of gold and 45 billion ounces of silver;

    If you ignore all the "money" in the world other than US dollars; and assume the US holds all the gold and silver, then:

    To cover our outstanding M3 (which they stopped keeping track of in 2006 because it was so embarrassing): one ounce of gold would be $2,900 or one ounce of silver would be $290.

    However, if you use the gold reserves of the US alone (and not the world supply) - we hold 260 million ounces - or per ounce- $53,790.

    What's the right price? I have no idea - but I know it's multiples of today's prices for both gold and silver.
    May 23, 2011. 07:53 PM | 4 Likes Like |Link to Comment
  • Europe's austerity has made its problems worse, Paul Krugman writes, and the renewed "confidence" that was supposed to revive the private sector when governments got their fiscal houses in order has failed to appear. The ECB acts "as if it is determined to provoke a financial crisis," raising rates and warning against any form of debt relief.  [View news story]
    Funny stuff, "free crap".

    The irony is that the Spanish fired the Socialists and moved to the Right - in order to get more "free crap". Retards.

    It just shows you, everyone gets the government they deserve.
    May 23, 2011. 07:10 PM | 4 Likes Like |Link to Comment
  • Ooh, that's a relief - the estimated date the U.S. will hit the debt ceiling is pushed back to at least April 5. White House Chief of Staff Bill Daley reminds that failure to raise the limit could be "very dangerous," but some legislators are not ready for compromise. The next logical step? Issuing 100-year Treasurys, of course.  [View news story]
    Feb 2, 2011. 08:41 PM | 4 Likes Like |Link to Comment