So stocks go North while the dollar goes South. If your stock doubles and the value of the dollar is cut in half, are you better off? Of course not. Additionally, stocks are only worth something if the companies don't fold. Companies need customers, and customers need cash to buy items. The ability to spend comes from one of three things: 1) the ability to borrow, 2) increases in salaries, or 3) the ability to utilize their savings. Which of these does the average consumer have? Just because the "price" of something goes up, doesn't mean its "value" does. Good luck with your call.
Why the Gold Rush Is Out of Steam and How to Respond [View article]
Have you seen today's spot price? BTW, many dealers are now buying gold (physical) at a premium. Ebay buyers are also paying premiums. When you previously sold gold back to a dealer, it was at a discount - no more, physical is where it's at. Good luck with your trades.
Gold Hits New Record High - But Why? [View article]
That was when people agreed, believed in, and trusted their government. I suspect that's no longer the case thanks to the viper's den of politicians that we have in Washington. If they go after people's gold, I suspect they might get another heavy element instead: lead. Good luck with that.
The Impending Collapse of the Gold Bubble [View article]
The average investor is not buying gold "in hopes of riding along with the rest of the crowd" - ETF's yes, physical investors no. Retail/physical investors are buying gold as an insurance policy. The fact that the majority of physical investors never sell their gold is a tribute to this. Additionally, when buying gold, you generally don't experience real gains or real losses. Let's say you buy gold at $1,400. If that price falls, it's generally falling because of the strengthening of the dollar (gold is priced in dollars). Thus, while you get less in terms of "price", the dollars you get in return buy more goods and services. Likewise if your gold doubles and you sell at $2,400 then it's very likely the dollar has collapsed and your more dollars buy less goods. Gold is a store of wealth and that wealth does not evaporate as could stocks/bonds/currencies. It's NOT an investment. Gold is never a good or bad buy - it's simply transferring wealth from an unstable monetary instrument into a stable one. That's why in terms of instability, gold does so well.
Over reported? Not in the circle of folks I run with. Ask them in a public forum how many own gold and no one will raise their hand. However, I know that most of them do - right along with a few guns and lots of ammo. Believe what you want.
The Top 1% Control 42% of the Wealth - Servitude for the Rest of US! [View instapost]
For those of you looking for a solution: Game the game. Pull any money you have out of the banks. Save in the form of income producing assets (no, not stocks or cash but small businesses, farm land, etc) and invest in wealth preservation instruments like gold, antiques, artwork, etc. that can be passed down generation to generation. Pay as little in taxes and as late as is legally possible. Vote out all incumbents - don't leave them in office long enough to become corrupted. Exercise and stand up for your rights: own a gun, express your opinion, motivate and mobilize others. Educate yourself and others - home school where possible. Don't patronize those companies that are screwing you: Wal-mart, BofA, etc. Learn how to be self sufficient. Focus on things that matter: friends and family.
Wealth Disparities in U.S. Approaching 1920s Levels [View article]
It's about time for folks to start taking action into their own hands. We need to start holding people accountable for their actions. Let's start by firing ALL incumbent politicians and demanding jail-time for all who have cheated us (corporate leaders and politicians included). THEN if nothing happens or changes; our government has failed us and it's time for mob justice!
Seems everyone I know is loading up on physical gold. I don't know of any that are selling. Institutional investors can buy and sell all they want - while tying to gain gain an additional buck. What will they do the one day they can't find any to buy? What will they do they day the dollar quickly devalues?
Money Magazine Still Hates Gold, So Buy It [View article]
I've always found that one of the best investment approaches is to do opposite of what the mainstream media suggests. By the time something is popular, it's time to get out.
Mickey Levy: Double-Dip Unlikely but Fiscal Policy Is a Disaster [View article]
Somewhere I have a printed copy of a forecast this guy did just before the economic downturn. He was calling for blue skies and missing a lot of clear signals. I sold all of my BofA stock shortly afterward. Turned out to be a very good call. Consider who's paying his paycheck before you take him too seriously.
Ahead of Black Friday: Has Consumer Confidence Been Restored? [View article]
Lending cut back by >2% ($2 trillion in credit lines cut), unemployment up (17.5% by some measures), salaries decreasing, taxes increasing, home values down. I can't see how retail sales could be up. But then again consumers are NOT rational animals.
The Puzzles of U.S. Political Economy Today [View article]
How do we know that doing nothing would have been worse. There are no control groups. This simple abandonment of capitalism and punishment for failure is akin to punishing child who wrecks their car by yelling at him and buying him a new car. Why not take away his license and to make room for a more responsible teenager on the road. By doing what the government did, they encourage bad behavior and put more responsible firms at a competitive disadvantage. There would have been plenty of other firms ready to step in an pick up the pieces of the failed firms. That's called CAPITALISM my friend.
The Puzzles of U.S. Political Economy Today [View article]
He doesn't mention the $14 Trillion in commitments made to Financial institutions. The article is over simplified to the point of being incorrect. But as a banker, I sure like the tone. Fail.
The Coming Decade Of Stocks [View article]
Why the Gold Rush Is Out of Steam and How to Respond [View article]
Gold Hits New Record High - But Why? [View article]
The Impending Collapse of the Gold Bubble [View article]
Gold: Over-Owned or Over-Reported? [View article]
The Top 1% Control 42% of the Wealth - Servitude for the Rest of US! [View instapost]
Wealth Disparities in U.S. Approaching 1920s Levels [View article]
Gold: Something's Brewing [View article]
FEEDS THE RICH, BURIES THE POOR [View instapost]
Money Magazine Still Hates Gold, So Buy It [View article]
Mickey Levy: Double-Dip Unlikely but Fiscal Policy Is a Disaster [View article]
Ahead of Black Friday: Has Consumer Confidence Been Restored? [View article]
Big Players Buy Up Gold [View article]
The Puzzles of U.S. Political Economy Today [View article]
The Puzzles of U.S. Political Economy Today [View article]