Nova Law

Is There A Golden Leak At The Fed?

Malkiel, I actually know some staff members at the Fed in DC. Certainly none of the members of the FOMC, of course. In social conversations one thing that always struck me was just how conscious of security the institution is, and how conscientious about their work that these people are. Their financial lives are literally an open book for the Inspector General to review should there ever be any hint of misuse of inside information. Yet Cara casually paints them all with the unsupported allegation of insider manipulation.

Cara's allegation of criminal misconduct is indeed the same kind of "crying" that he is wont to do when his predictions prove wrong, as they so often do. Here we are at the end of March, and back in January Cara predicted that we would be at $750 an ounce in the metal. As usual, he was wrong. His excuse? That the Fed is selling its gold reserves!

www.billcara.com/archi...

With Cara, it's always somebody else's fault, it's always a conspiracy, and as always, he produces NO facts to support his opinions.

Is There A Golden Leak At The Fed?

Proof please? You accuse the staff of the Federal Reserve of criminal misconduct. Such a charge requires proof, not simply an allegation.

Otherwise your statement is nothing more than libel which deserves to be ignored, if the people you wrongly accuse don't choose to exercise their civil remedies against you.

Gold Chart: A Feast for the Eyes

Cara said in this post that gold was poised for a breakout to the upside on February 26th.

In fact, gold topped on that day, and has been going straight down ever since.

How utterly amusing - Cara keeps his .000 batting average perfect.

And Neville, sorry you didn't take me up on my bet, I was counting on using your $100 to buy myself a nice lunch at the end of the quarter.

Gold Chart: A Feast for the Eyes

I hit the "add comment" button too quick. I should have written, "I will bet you $100 that the Fed does not drop the discount rate before the end of the first quarter, as Mr. Cara predicted. Do we have a deal?"

Gold Chart: A Feast for the Eyes

Neville, I could certainly be wrong on this one. Unlike Mr. Cara I freely acknowledge my mistakes. I'll make a wager with you if you wish. I bet you $100 that the Fed does not drop the discount rate before the end of the first quarter, as Mr. Cara predicted.

Gold Chart: A Feast for the Eyes

"This chart is eye candy for the readers of this blog who read my opinion on Jan 3 that Gold was going to rocket from 600 to 750 in 90 days. One month to go, I think."

Bill, on January 3 you wrote:

"I believe that gold will zoom over $750 this quarter because I think the Fed will start to lower the Fed rate. To me, that means we are in the final act of the 2002-2006 Bull market.

Yes, I think 2007 will be referred to in history as a Bear market."

www.billcara.com/archi...

The Federal Reserve has not "started to lower the Fed [sic] rate," nor have they given any signs that they intend to. Your "prediction" in as much as it have proven partially correct, is nothing more than a lucky guess. You completely missed the causality. You've proven no more reliable than a drunk who predicted on January 3 that gold would go to $750 an ounce because this year he was promised an endless supply of Jack Daniels.

Why do you claim to have correctly foreseen this move when your reasoning is quite clearly incorrect? Most people want honesty out of their financial advisors, not lies. Get back to posting the truth and perhaps people will take you more seriously.