Ron Rowland, your logic is wrong. In your example, the value of your investment has increased from $1 to $2. Thus, your current investment, now $2, is levered at 3x, not 6x. You're ignoring the changing value of your investment when calculating leverage. You're erroneously remaining focused on the original cost of the investment.
The original investment cost is irrelevant, in terms of calculating leverage. That's why brokerages keep changing borrowing power in margined accounts. They base borrowing power -- leverage -- on the current value, not the original value, of the investment. Better try again.
Why Jim Rogers Is Still Bullish on Grains and Gold [View article]
lousy analysis; major difference between 1961 arable land and 2008 arable land is not the amount of land but the productivity of that land; productivity gains far outweigh the loss in the amount of land
We need to keep in mind, as we try to reason our way through this issue, that we are in the beginning stage of a paradigm shift. It is too early to see the new paradigm that will emerge.
That said, it is not too early to project that the new paradigm will include much more involvement by central governments in capital markets.
The consequences of that for gold, for currencies, for the entire range of asset classes, cannot be known.
The author is as clueless as the rest. Is his analysis right this time? Is it wrong? Who knows? His predictive record is so poor that it is essentially a random walk to act on his analysis.
And please, to say I majored in economics in college in order to establish my credentials is such a howler that it takes my breath away. What kind of sophomoric web site is this, to let such people have a prominent role on it?
Friday's Bond Outlook: Strap Yourself In [View article]
OK, Sherlock, how about pointing this out about LIBOR? From Roubini's Blog, 10/3:
Yesterday Thursday a senior market practitioner in a major financial institution wrote to me the following:
Situation Report: So far as I can tell by working the telephones this morning:
LIBOR bid only, no offer. Commercial paper market shut down, little trading and no issuance. Corporations have no access to long or short term credit markets -- hence they face massive rollover problems. Brokers are increasingly not dealing with each other. Even the inter-bank market is ceasing up.
Burst Bubble? Commodities' Long-Term Story Remains Intact [View article]
what a joke for analysis...."the market has already tested me many times and I can’t profess to have bought every time at that bottom. I have regretted it every time."
Duh! Who wouldn't always regret not buying at the bottom?
Let's pick up our analytic game: is this the bottom, that's the real point to be addressed.
this too long post misses the point: we are in a dollar bubble; the price of oil, priced in Euros, is about what it was last year. it's the dollar in trouble, and the United States, first and foremost, that is in trouble
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Latest | Highest ratedUnderstanding Triple Leveraged ETFs [View article]
The original investment cost is irrelevant, in terms of calculating leverage. That's why brokerages keep changing borrowing power in margined accounts. They base borrowing power -- leverage -- on the current value, not the original value, of the investment. Better try again.
Why Jim Rogers Is Still Bullish on Grains and Gold [View article]
pick up your analytic game
Is Gold A Sucker's Bet? [View article]
That said, it is not too early to project that the new paradigm will include much more involvement by central governments in capital markets.
The consequences of that for gold, for currencies, for the entire range of asset classes, cannot be known.
The author is as clueless as the rest. Is his analysis right this time? Is it wrong? Who knows? His predictive record is so poor that it is essentially a random walk to act on his analysis.
And please, to say I majored in economics in college in order to establish my credentials is such a howler that it takes my breath away. What kind of sophomoric web site is this, to let such people have a prominent role on it?
Jim Rogers Speaks Out - Where Is He Putting His Money? [View article]
Friday's Bond Outlook: Strap Yourself In [View article]
Yesterday Thursday a senior market practitioner in a major financial institution wrote to me the following:
Situation Report: So far as I can tell by working the telephones this morning:
LIBOR bid only, no offer.
Commercial paper market shut down, little trading and no issuance.
Corporations have no access to long or short term credit markets -- hence they face massive rollover problems.
Brokers are increasingly not dealing with each other.
Even the inter-bank market is ceasing up.
Thinking About the Next Six Months [View article]
can you say "knee capping" anyone if GE doesn't pay up??
Taxes, Deficits, Inflation: They Spell Disaster [View article]
Burst Bubble? Commodities' Long-Term Story Remains Intact [View article]
Duh! Who wouldn't always regret not buying at the bottom?
Let's pick up our analytic game: is this the bottom, that's the real point to be addressed.
Financial Entertainment TV Buries Itself with Disinformation [View article]
give me a break (no pun intended)
Financial Entertainment TV Buries Itself with Disinformation [View article]
The New Pillars of Inflation [View article]
Under The Radar News - Friday [View article]