ROLEX18K

Economy Watch: What if Stocks Were Priced in Gold?

Whatever DJIA will do, the price of gold can't rise much further, yes, gold is a bubble same as stocks were a bubble last years.
But there is one crucial difference, stocks even when overvalued serve some good to society, to investors who bought/sold them, to employees who work, to consumers...I think you all can imagine that stocks are not some ticker symbols on exchange, there is much more about stocks than gold.
The normal ratio for DJIA/Gold would be 20-40 historical average 30.
Today's gold price is very close to collapse as there is no even money to pay back credit card debt, morgage.
How something can rise when even very rich people cut spending like crazy, I ask who then buys gold.
Maybe you?

The Shedlock-Schiff Affair: A Chronicle

There is nothing knew in it, 50% of hedge funds are scam like Madoff, not exactly stealing money ,as investors signed agreement to pay a manager 20-50% from generated profits and most profits are generated in OTC internet websites turned trading pits supported by banks who make commissions out of hedge funds trading in exotic, non existing assets.
The other 49% of hedge funds are delivering long term returns same as passive mutual fund investing in SP 500, only hedge funds charge 20-50% for it, mutual fund 0.25%.
And then there is 1% of hedge funds who survived crash of 70's, 80's, 90's, 2000 and current crash, are not funds that manage billions $$$, only small funds can make money consistently and their size can not be more than 500 mln$, the big hedge funds that had billions and now will be liquidated were not made to make money from trading, they are good marketing firms and good fraudsters and bear market found them naked and now it's time to face it.

Trust - Not Confidence - Is the Issue for Geithner

The geithner's face reminds me faces from the movies with cheaters and low level criminals, he looks like a lair who stole some stuff from Wal Mart and after being catched with pockets full of stolen goods, tries to persuade the cops that he done nothing wrong and it is a set up, then tries to bribe the cops.
For me is very clear, he is corrupted crook who will think from the first day on the work "damn America, I am here to make money for me and my cronies,the time is short, I will steal as much as I can from American taxpayers, help my bankers friends so then I will be out of job in 4 years, they will at least offer me a warm seat on the board of major financial institution.This crash is real, nothing can be done to save it and I don't care, only me and only my money, good obama is so stupid took me for this job with my reputation of thiev, but as obama will be no more than 4 years, we will both steal enough as American people are very naive,HAHAHA"

Let's Just Say It: Print More Money

Money printing is one of major painkillers in this bubble and it works!
Some argue that it will build inflation but I doubt, the slowing economy is like an atomic bomb for inflation fearing freaks, the competition began in the world economy and it's name " I CAN SELL IT EVEN CHEAPER" as those industries that will insist on old (2007-2008) prices will be squeezed to bankruptcy by those that can sell it cheaper.
Already there are many brands that cheat us and steal our money, this can be a washing machine soap a car or a milk.
Each brand spends days and nights of thinking how to trick consumers into buyers of their product, I can promise you that from 10-20 brands of milk all of them are the same with same milk inside, all organic milk brands have the same organic milk inside.
The difference in price is the difference of how good company tricked you.
In this crash the survivors will be industries that will say to themselves, I STOP WITH TRICKS I SELL FOR WHAT MARKET PAYS ME and those industries and companies that will say I AM THE BEST will see their stock prices (like MSFT yesterday) fall down very hard and go bankrupt.
There is no a single monopoly that can withstand the bear market like this one that will last 20-30 years, if MSFT will not lower it's prices, even few years will not pass when new competitor from nowhere will appear with operating system for 70% off and computer manufacturers will be happy to work with him AS HE IS CHEAPER AND SAVES THE MONEY.
Printing money really helps!

Preserving Wealth During the Global Banking Crisis

I love crashes, my biggest profits I made in 1997,1998,200-2002,200... with the rest of the years almost breaking even.
My biggest worry is not if Dow Jones will stop landing at 2000 points in 10 years, my worry is not how many factories in China or India or USA stopped-let them stop indefinitely as each stopped dirty industry equals less emissions=cleaner air for all.
I am also not worried about Saudis or Russians who have no choice but stop their theatricals with output cuts and pump Oil even at 5$ as otherwise if they will stop selling their only commodity their countries in the Middle East will turn into terrorists controlled states and in Russia the revolution of 1917 will repeat with blood spilling in millions.
My biggest worry, as individual investor/trader, and it should be a worry of every investor I suppose, if my 4 futures brokers ( RCG LLC, PENSON GHCO, NewEdge, MAN Financial ) or banks will be able to pay me my profits and if I will be able to access my funds even if Oil will be 5$ or SP 500 = 400 points and Dow Jones 200 points.
I am very concerned not about the prices of commodities or any other assets worldwide, I am very concerned if I can trust the financial system where I keep all my funds at brokers and banks.
It doesn't matter if you are farmer from Iowa or trader from Frankfurt or Phd. economics writer on Seeking Alpha, we all have money in the banks and financial institutions, we can not now buy for all the $$$£££ gold or emeralds or diamonds or uranium and after the financial system will collapse and my brokers will not give me my money as they will be bankrupt, we can't go with our gold bars and diamonds to supermarket and exchange it for meat and bread.
THE BIGGEST QUESTION NOBODY THINKS ABOUT - IF OUR MONEY IS SAFE, I DON'T TRUST FDIC or SEC or what Fed or Central Bank says, my instincts show we are heading for the markets where even 1929 will be seen as a much smaller and shorter crash, now is the biggest crash in history started and we are all witnesses and participants in this crash.I expect the worse of this mega mess.

Welcome to a New World of Investing

LYNAS CORPORATION (Other OTC: LYSCF.PK) traded on PinkSheets, typical scam stock, no profits, no info, no SEC fillings,down 80%.


Clean Energy Fuels Corp. (CLNE) this one is down 70%, loses money,performs more or less like the price of Crude/Oil even if belongs to "CLEAN" stock category.


Chemical & Mining Co. of Chile Inc. (SQM) down only 55%, rare mining company that made 3 times less money than it's peers in mining industry last year, P/E 16 against miners P/E up to 5 in 2008.
Performs more or less like any market index, wher many stocks are down 55%.


ANNALY CAPITAL MANAG(NYSE: NLY) down 30% so almost like buying passive ETF like DIA,SPY, would do you the same damage without any special insider knowledge of the world.


Inergy, L.P.(NasdaqGS: NRGY) down 30%, performs 2 times better than the price of energies to the downside, and at least 2 times worse to the upside, as many stocks in it's category quintupled in price when Oil and Gas was balooning.
Performs same as SP500, little connection to industry it represents.


ENERGY TRANSFER PRNT(NYSE: ETP) down 30%, also little connection to it's industry, performs like SP500.



BROOKFIELD ASSET MGT(NYSE: BAM) down 45%, nothing special just another financial company.


PETROBANK ENERGY & R(Other OTC: PBEGF.PK) also Pink Sheets typical scam stock, with no data,volume of 8000 shares,high stock price.
It's name say what stock investment is it.


Bottom line:

The author is long the SP500, instead of wasting brokerage commissions on 10 different stocks with few of them in the "dark" category, if you follow and respect the author of this article, just buy SPY or any othe passive long index ETF.


Mark Medayski

A Depression and Recovery in Internet Time

Very nice picture with the Gold Bar - immediately I can see that the author is highly talented individual with high knowledge of the world.
Now regarding the Gold itself, each bubble has it's heroes.
We don't must go back to the nemes that sold us an Internet Bubble or any previous assets bubble, this guys are long gone, bankrupt, fired and you can meet them in KFC selling other commodities like chicken.
Just last year most investors from 1,000$ to 10,000,000,000$ hedge fund were riding the biggest investment opportunity of all times - the commodities.Today we all know about the losses and bankruptcies of this guru's but Gold offers the last hangover for last of the Mohicans who pumped Gold lately, as price didn't crash yet so they use it as the last chance.
I wouldn't follow the lonely boat in the storm category 5 in the current global crash that last had it's similarities in 1929.
Sell Gold.

Mark Medayski

Gold, Viagra and Emerging Markets: Harry Dent on 2009 and Beyond

The GC will crash, I repeat my previous comments only bring new observation for your consideration.
Today walking in the downtown in Frankfurt, Germany, I passed many jewelerly boutiques many of them are brand names like Cartier, Wempe, Christ and all the rest is high street high end focused luxury selling shops.
Most of this boutiques were empty and employees inside exceeded public inside, I wondered if they sold anything at all today.
Then we went with my girlfriend to shopping center also high end focused, the highest floor with most expensive designer clothes was alost empty, the one below little occupied, the floor where are the cheapest brands and exit/entrance was also not busy.
That's why Gold is heading for 700,600,500,400,300,20... but soon 500-600 $ per ounze is very likely.