Mental Block

The Risk of Global Economic Meltdown

Nah. We'll be going, too.


On Jun 17 07:55 PM spald_fr wrote:

> On Jun 17 07:48 PM The Geoffster wrote:

Where's the Government's Straight Talk and Transparency?

I like this one better. Lots of fun here. . .

eggcorns.lascribe.net/.../

> See WikiAnswers for a good explanation of the difference of bold
> face and bald-faced lies.

Notes on a Scandal: High Dividend Investor's Survival Guide to This Unsustainable Rally

Full faith and credit ain't what it used to be. . .


On May 22 08:47 AM wpdragon wrote:

> Good summation of the background for the rally, but you forgot the
> most important reason why the rally could continue.
>
> GS.
>
> And they have the full faith and credit of the US government backing
> them - absolutely no doubt about it. You may not like it, just like
> I don't like it, but it is what it is and until it isn't, this con
> job will continue.
>
> After that, well, that is another story.

How Are Those Banks Doing? Depends Who You Ask

And why shouldn't those investors have lost their money??

>>>>>&g...
One option that the Treasury has begun to consider is turning the TARP loans into equity (stock in the banks). This costs the taxpayers nothing. The losers in all this will be the investors that own bank stocks. Investors will find their ownership positions diluted and the value of the stocks would fall substantially.

The Banking Oligarchy Attacks Elizabeth Warren: Why They're Wrong

It's illogical that the housing bubble can be brought back. The big banks are too big to fail. The longer this is dragged out, the worse the ultimate outcome becomes. Sounds like some *really* smart and logical folks are calling for STSS as the solution. Is Geithner still saying that the law doesn't allow for that? What is his motivation? What are we waiting for? What am I missing?

Understanding Triple Leveraged ETFs

Thanks. And what happens after it has run against you for a few weeks - but then runs back your way for a couple? TIA


On Apr 08 01:22 PM Ron Rowland wrote:

> The reason these things work this way is because the daily reset
> of the leverage results in higher "effective" leverage every day
> the trend continues to move in your direction.
>
> For example, say you buy a 3x fund that moves in your direction for
> a few weeks and you are now sitting on a 100% gain. At that time
> your leverage is about 6x from where you started. And most importantly,
> it is at 6x at the worst possible time - when the trend reverses.
> So now you have 6x leverage working against you.

Understanding Triple Leveraged ETFs

Match the upward spikes on the charts of the leveraged short funds with each new low made by the index that it shorts (or even just on a chart of SPY). If one has reason to believe (as anyone with his eyes open would, IMHO) that those indices are likely to be making new lows, then it seems to me that the big headwind *can* be beaten.

*Why* these "spikes" come back down so quickly eludes me. I had *thought* it was because each time they spiked up, the government changed the rules. However, I it may actually be something else that is intrinsic to the these vehicles. I'm not smart enough to figure it out. However, when the S&P takes out 666, I'm betting that holders of the leveraged shorts - even starting at today's price levels - with some agile profit taking, can still do extremely well. I'm all ears for ideas on improving my agility. :-) However, I do have my eye on a specific price target for my holdings so that I can get out before you do. :-)