change is the only constant

Volcker's Wake Up Call: Spread the Word

Moral hazard being breached has sounded the death knell for most rating agencies, they just don't know it. Bypassing credit grading gives this Volkerian approach a clean basis to identify cash flow. When the amount of money to service debt becomes greater than income it becomes impossible to repay loans. It is the very definition of insolvency. His answer? Show me the (cash flow) money.

Volker's tough medicine is, simply put how to identify what our banks' means really are; and he is removing a lot of hocus pocus asset value manipulation. His view seems to imply manipulation of asset values is where the underlying problem lives. Volker is strictly defining asset values as cash flows. This approach, while enormously painful, will be the only way to fix securitization. Trust will have to be re-earned and credit markets will need an FDIC like guarantee to work again. That is what moral hazard being breached really did. While not spoken bluntly; trustworthiness and risk are related. This Volkerian approach is simple and genius.

Obama Draws a Blank on How Banks Really Work

When stuck between two opposing perspectives, each with valid points, the correct response is usually to restate their points, and let chance, force and endurance carry on. This presumes truth is in the balance.

The best response is to be quiet and not let one's own ignorance speak volumes.

When you see the big picture, its really hard to know intelligence, only not understanding is clear.

Where Is Gold Headed?

Forewarned is forearmed. I agree last decade's method of fiscal and monetary management will not be what is done over the next ten years. If we focus inwardly and are able to develop a sufficiency of key commodities, then our trading position becomes stronger and the dollar is not downright doomed. If not, we are in a global game of chicken. Either way, after having food, energy and a gun; gold is a smart trade. Your insight is much appreciated.

Matt Taibbi: Obama's Big Sellout

In a nutshell, we were suckered by Wall street insiders focused on money, power and their own well being. Obama brought statesmen rhetoric, but hired those whose actions were more of selfish practices. Democrat, republican, black, white even smart or dumb didn't really matter. What mattered most is one is allied (or related) to someone who was of influence and had a legacy connection to the old school old boys network.

Is that about the gist Edward?

After 12 months out of a 48 month term I would agree with you and Taibbi. The problem our nation faces is, however, one of taking bad choices and making something good come out it. So, if he is able to keep Bernake, get rid of Geithner and Summers by the mid-point in his term; I would say Obama is more shrewd than we would give him credit. If not, then he is the perfect example of mob management; and proof luck counts.

Peyto Energy: Deep Basin Drilling 'Going to Explode'

I have agree with Ferdinand. A new technique for finding gas does not make gas that isn't there appear. And while a better method may help with gas that would otherwise not be profitable to chase, the same economies go along with hits and misses. Pursuing the belief that finds do not need to be as voluminous to prove profitable, may consume operating capital that would be better suited as a pay out in dividends. Like gambling however, you won't know until you place your bet.

Expect a New Direction for Crude Oil

There are both short term and long term forces at work; trade and currency issues; monetary and hard asset concerns; , and last and most importantly oil's current usage, energy speculation and the interaction between collapsing industries, collapsing demand and growth.

There are global changes that will accelerate and decelerate Oil's usage, the question is which technologies, nations and companies will win, and which ones will lose.

The only thing certain is uncertainty. Trade, trade, trade.

Buy Gold at or Below Net Asset Value with This Closed-End Fund

Thanks.

The Costs of Not Fixing a Broken Financial System

It is hard to know from bad to less good, and bad to worse. That is why frogs and people can be boiled slowly, but not quickly. We only know for sure we cannot go back in time to when American economics and Military might trumped opposition on both sides geopolitical debate. As a nation we are currently suffering the wounds of being severely overextended. If we let the dollar go, and focus inwardly, we are left to the mercy of our trading friends as competitors, and enemies as poisonous pundits. If we seek to strengthen the dollar, we will install austerity measures that will add to internal strife and weaken the environment of opportunities that make democratic capitalism work.

The problem is not..... the costs of not fixing a broken financial system.... the problem is how do you repair the breach in Moral Hazard by using the people who caused it? When individual CEO's run companies into the ground, they are mostly fired. Our banking establishment has not been treated this way because they believe all were collectively wrong, so paradoxically, no one is to blame. Breaching Moral Hazard was like a dam being burst. So, in a very weird way, we on main street are getting what it's like to be a Katrina victim.

Energy Impoverishment: Heading Back to Coal?

Gregor-

Again, fine article. No matter how you look at it, the desire to have a cheap energy solution has proven extremely expense. Whether or not you believe a magic enegy bullet exists; the only thing certain is there will be lots more false starts down the road trying to replace oil.

The Ugly Decade

Bespoke, thanks for putting some perspective on trading, investing and time horizons.

COBRA's the Grinch that Will Steal This Christmas

There is no difference for those who are not sick now, not paying COBRA and gambling (that you will not get sick) with your health (maybe life?). I am not sure if COBRA as Grinch is accurate; maybe COBRA as accountant who will either say "I told you so" or "you were lucky" depending on outcome.....is what many face. As a parent who faced this question last year, but not now, I too asked myself what is wise? To cripple hope in youth's ability to beat the odd's? Or to not sugarcoat tough choices. As my kids were young, I let go of COBRA and bet on not getting sick and spent the money on hope. I gambled and I knew, like being at the casino, sooner or later you will run into the odds of losing your bet. At the casino, each bet is independent of one another. In life however, while risk still applies, each new day requires both judgment and memory. Just because one may lose, still..... you can't stop taking risks.

What Will the U.S. Economy Look Like in 10 Years? Look to Greece

Using debt to fund current liabilities instead of investments is dumb whether you are Greece, the USA or Zanzibar. If you do it you will be sorry because paying this type of debt back is painful.

That about summarizes your point.

This article makes not just a dubious metaphor, this stretch is downright apples and oranges. Greece getting pushed around by its EU brethren is in no way the same thing as our economic reality. We were not fleeced by devious foreign bankers; it was the devious domestic variety that did the fleecing.

Natural Gas: Powering the Dubai Overshoot

Europe just bought Texas. Sovereign Wealth is really an educated population, and seemingly unearned riches really do have limits. Wisdom at someone else's expense is the best education money can buy. PT Barnum should have said also history always repeats itself.

Gregor, you are so far ahead of the curve, you are feeding back onto yourself.

Whatever Happened to Those Ethanol Companies?

The concept, the means and the goal are all simple and easily sold: energy from renewable sources that can be done within our nation. The reality of execution is where economics meets science, and science is limited by what is possible not by what we want. The demand for this simple concept will not go out of style. My walk down memory lane with you yields the goal is neither foolish nor silly, but we just haven't found the way to go with the will. I guess that's why this stuff is called speculation.

10 Reasons to Believe That We're in a Depression

Marvin-

You are a Scrooge and a Grinch. However, your arguments are persuasive and seemingly sound. A very well written and insightful article.