Hal.P.

Beware the Current Bull Market in Derivatives

I wish the news media would target this area for closer inspection too, but I don't think anyone can wrap their heads around what the derivatives market is and how it relates to them. Heck I can hardly get my head around it. The world wide number is... well... it's a heck of a lot bigger.

The Banking Panic Isn't Over

Good article. I think we are yet to see the worse to come too. Like then, what is taking place is an attempt to not face the bad decisions head on and accept the consequences and let banks and investments fail. The hope is that by merging good with bad that the good will somehow heal or spread the failure across the system so that it won't hurt as much.

But that's not how it's going to work. Gangrene has set in and must be cut off. Merging is only going to spread the sickness and increase it bringing everyone down hard, just like it did back in the 1930's. It's one of the reasons that China is doing it's best to shore up their gold holdings and get rid of as much US debt holdings as they can. They see the dollar as a dead man walking.

Wall Street Breakfast: Must-Know News

This is crazy. Our free market society was supposed to liquidate these bad banks to begin with. That’s what it does with failed businesses. It’s what keeps the markets strong and thriving. Should have liquidated them to begin with. No business or country for that matter is too big to fail.

What’s too bad is I doubt that the advice of liquidating them will be heeded.

FDIC Watch: Agency's Insurance Commitments 34% Higher than Reported

Great insights here. Thanks for the in depth work on putting this together. It is indeed a giant Ponzi scheme. Legal of course because the government declares itself exempt from the law.

Credit Card Cancer

I couldn't agree more with Schiff. Our government seems to be doing whatever they can to perpetuate this credit fallacy and the outcome I don't think will be good. The best thing we can is prepare for the coming inflation and shake off our personal debt and build savings. Get some gold, silver, and food. Anyone else notice how much people are turning to growing food at home?