thegreatyakk

Treasury's Pricing of TARP Warrants: No Way Out

Its a little late to realize you made a mistake! Why don't you do your homework next time, before you rush out and vote!!


On Jun 29 04:11 PM dcb wrote:

> Hey, maybe Obama is even more corrupt than Bush. Maybe he is just
> a better used car salesman. I hate to say this but starting with
> the AIG bonus issue, and at each and every step of the way Obama
> is giving the banks any and everything they could ask for.
>
> In the last election the american people voted for change from a
> grass roots level. The election has been high jacked by the exstablishment
> and Mr. Obama himself. I see him as becomming the greates disappointment
> ever elected by the Anmerican people and one of histories greatest
> failures. When given the mandate of change by the American people
> he chose to sell them out to special interest groups. At leat in
> Iran the People knpw enough to riot when an eletion ahs been stolen
> from them. Mr Obama stole the election from us, the very people who
> actually voted for hem.

India Buying Gold Again

What is your source for what the "smart" money is doing?

Gold Bubble Still Expanding - Canaccord

The real bubble that is expanding is the supply (or anticipated supply) of the world's various fiat currencies. This is naturally pushing up relative prices of commodities, most notably gold, because they are, of course, denominated in this paper.

Will the U.S. Dollar Be Falling Soon?

You ask the question: "Will the Dollar be falling soon?" It already is, sir. Don't make the mistake of comparing it with other fiat currencies, you must measure it against something of real value. Precious metals having been climbing in relation to the dollar since its convertibility was severed decades ago. This accelerated in recent weeks as well.

What's Going to Replace the Dollar?

Can anybody name any true fiat currencies that have stood the test of time? I can't. Each one that comes to mind has ultimately collapsed. This is nothing new for the U.S. Consider the Continental Dollar (its collapse is one reason the Constitution contains the phrase that gold and silver shall be legal tender) and the original Greenback during the Civil War years.

T-Bills: Bubble, Bubble, Toil and Trouble

Thanks for the comment, DVW.

As I understand it, the buying stampede is occurring mainly in short-term Treasuries. That being said, it seems reasonable to purchase an ETF such as PST. But on the other hand, the value of long-term bonds are the most susceptible to interest rate fluctuations. So, which ETF would be best suited to profiting from a potential (or should I say inevitable) collapse in the Treasuries market, PST or TBT?

The Good, The Bad, And the Inaccurate Oil Forecasts

>"So what's the outlook? I don't know. We're much closer to an equilibrium >in which the price at which new supplies can be brought to market matches >the price that people are willing to pay. But the market is tremendously >volatile."

Oil sands, and many other innovative production techniques, are not economically viable with oil prices this low ($60/barrel seems to stick in my mind). Anyone care to comment on the effect this will have on production?

One other thing that must be remembered is that in the oil market, unlike some other commodity markets, supply is largely dictated by an international cartel that seeks only one thing: abnormally large profits.

Zell's Not Smiling

How long till Obama's smile fades?

Commodities Are a Joke in This Market

Macro Man writes: "One of the stories of 2008, when the history is finally written, will be the implosion of the 'commodities as an asset class' investment theme."

B__ s___! For one speaking of history, Macro Man sure uses charts with short time frames. Nothing has fundamentally changed in regards to the secular bull market in commodities that has been going on for the past several years. Supply has continued to wither in many sectors (metals, agriculture, petroleum) and demand will pick up once the economy regains its footing.

Letting the Reinflation Genie Out of the Bottle

On the inflation question, one of the greatest dangers to consider is the fact that the long-term effects of inflationary policies will likely lead to total collapse. Long-term inflation encourages net borrowers and punishes net savers. Ultimately, this is unsustainable economically and politically. Politically, it will produce a voting majority that will continually push for unnaturally low interest rates and inflationary policies (I fear we've already reached this tipping point). Economically, it will lead to bankruptcy when we are no longer able to service our debt. If this happens at the national level and the US defaults on its obligations, the whole game is up.


>User 55065: For a economy-idiot like me, can someone explain why >having some 20-30% inflation of prices and wages be so dreadful. If >wages magically went up by, say 25%, most of the home loans and >credit card loans will suddnly become payable by the consumers. And >then of course prices will also go up by 25-30%, and all that has to >happen is decreased future consumption and we could be OK? So in >future even with 25% higher incomes, we all consume 20% less food, >20% fewer cars and fuel etc, that is the new reality any way, can the >wiser crowd shed some light on inflation for us?

Could PowerShares DB Commodity Index's Base Be a Launching Pad?

Around my home, the price of regular unleaded has fallen beneath the price of E85 ethanol, I assume this is happening in many other places. If gas stays low (lower than ethanol) for a prolonged period of time, will this create a large glut in corn inventories as ethanol becomes unpractical? Is this already priced into agricultural commodities?

Gold: The Last Carry Trade

CLH - "Hyperinflation or any kind of inflation is not possible during a credit collapse. Buying gold now makes no sense. Its interesting how false information during time of panic is given out and believed by so many. Gold will continue to fall as the dollar becomes more valuable."

Seems true on the surface, but the fact of the matter is that the Federal Reserve ALWAYS overestimates required money supply, rather than underestimating. In other words, the Fed errs on the side of low interest rates and excessive liquidity in times of crisis because of their predominantly Keynesian views. The only exception I can think of was Volcker back in the 80s, who went to great pains to control money growth in an effort to kill inflation. The current chairman will do no such thing, and the end result (realized after the fact) will be that interest rates were kept too low for too long.

What Investors Can Learn from Goalkeepers

Why, then, did you sell when other investor's sentiment was negative? Perhaps your time horizon is too short.

GM: Charging Forward with the Volt?

"The Volt is the Future of GM. Or it’s dead."

Running a bit overboard, are we? Let's be realistic. Yes, GM needs to cut costs. Its business is much too big for the current volume of products it sells. But realistically, it sells thousands of vehicles a year. Chevy, Pontiac, Saturn, Buick, Cadillac, these are all extremely viable brands. Costs just need to be brought under control.

Darwinian Capitalism Finds Its Moment

No, John, just a great example of innovation (which is a very optimistic attitude at heart).