Seeking Alpha


Send Message
View as an RSS Feed
View RHD's Comments BY TICKER:
Latest  |  Highest rated
  • Eldorado Gold: Growth And Value [View article] may wish to review my comment on a different article "Winner Takes All: The Super-Priority Status Of Derivatives" re your last sentence above.
    Apr 12, 2013. 01:11 PM | Likes Like |Link to Comment
  • Eldorado Gold: Growth And Value [View article]
    Emmet...thank you for another thoughtful, concise, sensible article focused upon an interesting PM name. I am quite long EGO, bought right, and given today's action I am paying attention to further opportunities to optimize position in the name. ndras, to the extent I can understand him, is perhaps correct; perhaps PM breakouts, given the geopolitical and macroeconomic environment, may take materially less time to evolve than historically. The CBs have established their intent. The prop desks are net long; today's action may be Act III, Scene 3.
    Apr 12, 2013. 09:41 AM | 1 Like Like |Link to Comment
  • Winner Takes All: The Super-Priority Status Of Derivatives [View article]
    I refer you to facts:
    "The 15-page FDIC-BOE document is called “Resolving Globally Active, Systemically Important, Financial Institutions.” It begins by explaining that the 2008 banking crisis has made it clear that some other way besides taxpayer bailouts is needed to maintain “financial stability.” Evidently anticipating that the next financial collapse will be on a grander scale than either the taxpayers or Congress is willing to underwrite, the authors state:
    An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company [meaning the depositors] into equity [or stock].
    In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed- in creditors would become the owners of the resolved firm. In either
    country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution.
    No exception is indicated for “insured deposits” in the U.S., meaning those under $250,000, the deposits we thought were protected by FDIC insurance. This can hardly be an oversight, since it is the FDIC that is issuing the directive. The FDIC is an insurance company funded by premiums paid by private banks. The directive is called a “resolution process,” defined elsewhere as a plan that “would be triggered in the event of the failure of an insurer . . . .” The only mention of “insured deposits” is in connection with existing UK legislation, which the FDIC-BOE directive goes on to say is inadequate, implying that it needs to be modified or overridden."

    Further, as to Dodd-Frank:
    It used to be that the government would backstop the FDIC if it ran out of money. But section 716 of the Dodd Frank Act now precludes the payment of further taxpayer funds to bail out a bank from a bad derivatives gamble. As summarized in a letter from Americans for Financial Reform quoted by Yves Smith:

    Section 716 bans taxpayer bailouts of a broad range of derivatives dealing and speculative derivatives activities. Section 716 does not in any way limit the swaps activities which banks or other financial institutions may engage in. It simply prohibits public support for such activities.

    NB: Note further that BoA moved its derivatives book from ML into a depository subsidiary about two weeks ago when BoA was downgraded.
    Apr 11, 2013. 05:47 PM | 1 Like Like |Link to Comment
  • Gold Is Not A Commodity: What Moves The Price? [View article] you may recall, I follow your work very closely and greatly appreciate your sensible approach. This article, however, focused upon factors "moving" the price of gold, completely omits any substantive discussion of the price discovery process or mechanisms, on the major gold exchanges inclusive of SGE. I am not going to arbitrarily jump into the hornets' nest of "Crimex", JPM, HSBC, Fed collusion, and Elvis on the grassy knoll. I do think that price discovery is an essential determinant of "What Moves The Price?"
    Please reply should you be so inclined. Thank you for another very good piece.
    Apr 11, 2013. 08:54 AM | 1 Like Like |Link to Comment
  • Precious Metal Analyst Watch - April Edition [View article]
    Very good comparative analysis in your normal concise, sensible and substantive style. Thank you.
    Apr 11, 2013. 08:21 AM | Likes Like |Link to Comment
  • Some Thoughts On Bitcoin, And Why Bitcoin Is The Ultimate Bubble [View instapost]
    Interesting article; thank you. You have not, however, defined "bubble" adequately in this specific context; the "housing bubble" or the "Internet bubble" demonstrated quite different characteristics than the potential "bitcoin bubble" attemptedly articulated above. Please expand on the micro- and macro-economic "bubble" effects as differentiated from the USD or any other fiat currency.

    "Why Bitcoin is the ultimate bubble: Bitcoin cannot become money except through a bubble phase. If Bitcoin cannot become a bubble,then Bitcoin will not be money and it will go back to a very low price. The bigger the Bitcoin bubble blows, the higher the final value of Bitcoin and the more legitimate the currency becomes. The higher the value, the higher the purchasing power, and the more businesses will accept them. Bitcoin needs to keep blowing the bubble to bring in more people and businesses to accept it."

    I believe you have just described all fiat currencies.
    Apr 11, 2013. 05:48 AM | Likes Like |Link to Comment
  • Stansberry Analyst Matt Badiali's 4 Rules For Finding Junior Miners To Like Or Avoid [View article]
    ndras...Perhaps I am in error, but this looks like another Hotel California ("You can check in anytime you like/But you can never leave"). Grey Market:BMJJF? Trivial trading volumes? Please correct errors, if any. Thx.
    Apr 10, 2013. 06:18 PM | Likes Like |Link to Comment
  • State Of The Junior Gold Mining Sector - April 2013 [View article] you really mean to say that GS does not provide their very best advice for free? (I shan't even mention the muppets, or the giant vampire squid...)
    Another bit of (unfortunately morbid) humor; Casablanca, obviously:
    Renault: "I’m shocked, shocked to find that gambling is going on in here."
    Apr 10, 2013. 02:25 PM | 1 Like Like |Link to Comment
  • Apple Says It Is Willing To Throw The Baby Out With The Bath Water Over Royalties [View article]
    Withg...I don't think this discussion is interesting or productive for either of us; thank you for your reply.

    RFP means Real F**king Problem.
    Apr 10, 2013. 01:43 PM | 1 Like Like |Link to Comment
  • Bitcoin: Buyer Beware, This Is A Classic Bubble And Possible Fraud [View article]
    LJK...with the exception of the last sentence, concur. It is also true that...It is in the nature of good ideas that they be hijacked by bad people. (See "democracy")
    Apr 10, 2013. 10:28 AM | 1 Like Like |Link to Comment
  • Bitcoin: Buyer Beware, This Is A Classic Bubble And Possible Fraud [View article]
    ComputerWorld Security News:

    Bitcoin mining malware spreading on Skype
    New Skype spam campaign directs users to malware that uses the computer's CPU to mine Bitcoins, says Kaspersky Lab researchers
    By Lucian Constantin
    April 5, 2013 10:29 AM ET

    IDG News Service - Security researchers from Kaspersky Lab have identified a spam message campaign on Skype that spreads a piece of malware with Bitcoin mining capabilities.

    Bitcoin (BTC) is a decentralized digital currency that has seen a surge in popularity since the beginning of the year and is currently trading at over $130 per unit making it an attractive investment for legitimate currency traders, but also cybercriminals.

    BTCs are generated according to a special algorithm on computers using their CPU and GPU resources. This operation is called Bitcoin mining and is usually performed by users who operate multi-GPU computer rigs. However, mining efforts can also be pooled for better results.

    Cybercriminals have figured out that distributed Bitcoin mining is a perfect task for botnets and have started developing malware that can abuse the CPUs and GPUs of infected computers to generate Bitcoins.

    A new spam campaign spotted Thursday on Skype tricks users into visiting a rogue URL by using messages like "this is my favorite picture of you" as bait, Dmitry Bestuzhev, a malware researcher at Kaspersky Lab, said in a blog post.

    Visiting the rogue URL prompts users to download a file called skype-img-04_04-2013.exe that's a malware installer with a low antivirus detection rate, he said.

    According to Bestuzhev, the average click rate for the rogue URL is high, at over 2,000 clicks per hour. "Most of potential victims live in Italy then Russia, Poland, Costa Rica, Spain, Germany, Ukraine and others," he said.

    The malware dropper connects to a command and control server in Germany and downloads additional pieces of malware. The malware does many things, but the most interesting one is to run a bitcoin mining application on the machine, the researcher said.

    Users affected by this malware will experience abnormally high CPU usage on their computers as a result of the infection. "The campaign is quite active," Bestuzhev said. "If you see your machine is working hard, using all available CPU resources, you may be infected."

    Apr 10, 2013. 09:02 AM | Likes Like |Link to Comment
  • Exposure To Country Risk - The Yamana Gold Edition [View article]
    Found your prior articles focused on gold miners; thx. Update for 2012, if relevant, would be great. Any similar pieces on silver miners?
    Apr 8, 2013. 05:41 PM | Likes Like |Link to Comment
  • Exposure To Country Risk - The Yamana Gold Edition [View article]
    Another of your cogent, concise, well-written articles. Thank you. For my own greedy purposes :) as I am quite long AUY and consider them "best of breed", have you provided an article which I am too dumb to find which performs brief similar comparatives of the, say, top ten gold and silver miners? Thanks again for your quality work.
    Apr 8, 2013. 04:57 PM | Likes Like |Link to Comment
  • Apple Says It Is Willing To Throw The Baby Out With The Bath Water Over Royalties [View article]
    Withg...You are a retired programmer. I request you respond, should you care to, to my comment above re 45yrs. I find your fifth sentence remarkable; I further find remarkable "And in the meantime they will be supplanting VHC's supposedly essential technology with an alternative. It may mean Apple will have to create a standard of their own." i.e. a "standard" which does not comply with IEEE or ETSI re LTE-A or 4G. Please correct factual or logic errors, if any.
    Apr 8, 2013. 04:19 PM | 4 Likes Like |Link to Comment
  • Apple Says It Is Willing To Throw The Baby Out With The Bath Water Over Royalties [View article]
    40yrs...I am 25yrstech. Please (conceptually) outline the AAPL "replacement" which does not involve proxy servers and other remote device architecture, or any other "fix" which does not materially reduce security and increase latency. Thx; I believe AAPL has an RFP here. You are at least as aware as I am (I detest the "walled garden" AAPL approach to vertical user control) that iOS security is deeply embedded into iOS, inclusive of VPN.
    Apr 8, 2013. 01:58 PM | 2 Likes Like |Link to Comment