Allan Frain

Stabilization of U.S. Housing Prices

"Will Gold go to $2,000? If I bought at $1,000 - I hope so. But if I bought it at $350 an ounce, I would be long out of it before it got there."

Gold is for saving. What I bought at $261 I still have. Allocation is 100% physical and 0% paper. No margin calls, no defaults, no muss, no fuss. It dropped to $257 immediately thereafter, but in retrospect it didn't really matter.

The Arithmetic of Gold: Why Its Price Has No Ceiling

The USD Gold price will tend to infinity as the USD approaches zero (as all fiat des) and Gold retains finite value. The data points (price) along the tortured path to that point is what everyone debates. With the likes of Helicopter Ben at the helm of the USD...gold gains cheerleaders.

CIT's Failure Could Threaten Financial Sector's Overall Recovery

Let me go out on a limb here...

The assets will be assigned to GS and/or JPM. The liabilities will be moved to the taxpayers' ledger.

The only thing in question is the nature of the accompanying PR campaign.

Sure It’s Legal … But Is It Right?

Capitalism can survive immorality; it being self-correcting. Fed-era fractional-reserve Central Banking, on the other hand, 1) was born of immorality, 2) thrived on immorality, and 3) will die as a consequence of that very immorality. It's the collateral damage with which one needs to be concerned--Capitalism and Sovereignty being among the injured.

The Feds and UBS Reach a Squeal of a Deal

Swiss complicity in this took a quantum leap forward with their AIG money.

A shoebox full of Gold is preferable to fiat in ANY bank--Swiss or any other.

Monetizing the Debt: Open Market Operations and Statistics

Meanwhile, over at Treasury...Timmy is asking Congress to raise the debt ceiling.

The problem is not that the left hand does not know what the right is doing. The problem is that they are pummeling our economy and our sovereignty in efficient concert.

Consumer Bankruptcy Filings Hit 4 Year High

What is lagging is the appearance of the bailout money in the economy at large--it being confined to the financial club. The equity rally is a measure of how much cash the casino banks have at their disposal.


On Aug 10 05:21 PM Jack FghtClb wrote:

> I think historians will use a 'mo' prefix to the -ron used to describe
> you.
>
> Relative public debt to most economic indicators are at higher levels
> but within normal ranges. And the consumer has seen benefits of a
> 50% increase in the SPX - spell it with me f-e-e-d-b-a-c-k...c-y-...
> Unemployment is l-a-g-g-i-n-g.

July Consumer Bankruptcy Filings: Highest Monthly Total in 4 Years

"Why no mention of consumers being already over-leveraged...?

Because the Fed-era fractional reseverve fiat system is a Ponzi scheme in and of itself. One cannot "back out" of a Ponzi scheme--it must run its course to implosion.


On Aug 11 08:07 AM basehitz wrote:

> And yet retail, as measured by RTH, is up 40% since March lows as
> many bulls are using the “standard” recovery playbook.
>
> Recently Merrill Lynch declared “the recession is over”. In this
> week’s Barron’s, he was asked what his biggest worries are about
> the recovery over the next six to 12 months. His response:
> 1) tightening of Chinese monetary policy.
> 2) that the U.S. consumer worries sufficiently about higher taxes,
> higher energy costs and higher healthcare costs, and that keeps saving
> going up and spending going down.
>
> Why no mention of consumers being already over-leveraged and rightfully
> worried about future prospects as we’ve outsourced so many jobs?
> Savings has returned to HALF the historical norm of 8-10%. The responsible
> decision is to further increase savings. But ML, for his prediction
> to hold, requires we stop saving and return to the same behavior
> that contributed to this mess in the first place.
>
> Won’t worry, the market is up so the economy must be good. Kool-Aid
> is on the house, as long as the Chinese will keep buying our junk
> (I mean AAA rated) bonds.
>
> Here’s the full Barron’s piece.
> online.barrons.com/art...

Fannie Mae's 8K: .9 Trillion in Troubled Loans

if you believe that housing will "come back" as the retirement and attrition of the baby boom plays out--there is a great opportunity to place all you have into housing and witness for whom the WAKE UP bell then tolls...


On Aug 09 01:09 AM ifuwish2 wrote:

> as the housing comes back you will see these do great and make big
> money,,cant you guys see that,,or do you think that the housing market
> will always be down WAKE UP

Foreclosures: The Problem That Won't Go Away

...and on the backs of said underwater home owners rest shopping mall revenues and consequently the CRE market.

The Return of the Triple Play

Well and good.

Recognizing the market rally is not the issue. The questions are whether it is

1) a response to the "green shoots" of recovery or attributable to reckless monetization and wealth redistribution,

and

2) whether it is a head fake or the beginning of a long term trend

$75 Billion in New Treasuries on Deck Momentarily

Better phrased--Would you EVER bid against a money creation machine for the purchase of ANYTHING, particularly when such auction lot has zero intrinsic value, but represents a form of promise from ponzi operators who are peerles in the history of mankind ?


On Aug 06 06:49 PM JPSmith wrote:

> If you believe equities are going to crash again this fall, do you
> want to buy TBT now?

Geithner's Outburst Was Misdirected; Read the Riot Act to Bankers Instead

If Bush or Obama wanted the "riot act" to be read to the banksters neither Hank Paulson nor Tim Geithner respectively would have been put atop Treasury. Won't happen in this Administration. Would not have happenned under McCain, either. Now in a Ron Paul Administration...

Market Ramps Up on Disappearing Volume

In a fair market the correlation between price moves to market volume would be zero or slightly in the direction of the primary trend. As obvious as recent market manipulation has been--this is as definitive and demonstrative as it gets.

Mortgage Melt-Down Investigation: Goldman Sachs and Deutsche Bank Get Served

Would this be the same US Senate that voted to funnel money to GS throug AIG to pay them 100% on CDS on which they shorted MBS ? Now they want to know if GS et. al. had suspicions that said toxic MBS were of dubious value ?

Perhaps GS will get another $50M fine on a $20B scam--which will pass quickly through the Treasury before GS borrows it at 0% and buys long-term debt at 4% and deposits it at the Fed thereby saving the credit market to the benefit of all Americans.