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3 Reasons Not to Believe In Gold's Recent Rally

I must add that this article makes some compelling arguments to convince me that I should remain in mainly gold and silver. When I see the other major currencies catching up with the USA then I'll consider rolling over into another strategy. Remember those currencies are in trouble by and large as a result of increasing the money supply. It is more dramatic in the US currency because of the reserve status. From time to time please keep us posted concerning these facts you've revealed because they are very important as regards to the gold storey. I'm not saying that you're conclusions are wrong but they do give me some comfort in that I believe we have quite a bit more to move up in the yellow metal going forward. LOL Looking after your money.

The Roots of the Coming Crash

There is probably a thousand scenarios where two way or three way trading can be implemented across different markets when there is a reasonable predictable event such as the falling dollar. Mr. Roubini isn't called Mr.Doom for nothing. I have never read a positive piece of information coming from his mouth. He comes up with a particular trading scenario which may or may not result in a bubble. The investor that is most adept to employ this type of strategy is someone like Goldman Sacs. Many of these institutional investors have lots of taxpayer's money. They'll likely benefit and they'll likely know when to terminate their position. They carry a magic box that you and I are not privy to. So, Mr. Roubini can rant and rave all he wants but in the end it'll make no difference. All the Fed has to do is to signal it's going to raise interest rates and the so called bubble dissipates. LOL Looking after your money.

Dollar-Equity Correlation: Roubini's Got It Wrong (Again)

Great article. Roubini seems to be an expert on all aspects of the market if you listen to what he has to say. Of course, most of what he has to say is a bunch of bunk. He recently got into a tussle with one of the world's leading commodity experts and found out that he really is talking to hear himself talk. When he can put his hard earned money on the line and make a substantial amount of money using his principles then I'll take to heart what he has to say. But until then he's nothing more than a mouth piece who has nothing positive to contribute. LOL Looking after your money.

Canada Next to Raise Rates?

Mr. Carney seems to be quite adept about putting his foot in his mouth. His projections concerning the healing of the Canadian economy have so far been too optimistic. Most Canadian economists have whispered concerns about this man's ability. So far he has been completely wrong and he has conveniently blamed unexpected forces as an explanation for his unfounded predictions. Presently he has painted himself in a box with little recourse than to talk down the Lonnie so don't expect interest rates to be increased in Canada anytime soon. The Canadian economy is too dependent upon the US manufacturing base. LOL Looking after your money.

Buffett's Big Rail Buy: What It Means for Berkshire Shareholders

In the short run, I would bet that the shareholders of Berkshire will lose as a result of this transaction unless the economy has a sudden boost for the positive. Right now the economy is still looking fragile. Unemployment hasn't at the present time turned a corner. In fact, if you were to consider sectors that are considered safe plays you will notice in the headlines that substantial layoffs are coming down the tube. The financial situation is still under skeptical concern. I think the present shareholders of Berkshire should weigh their time frame in determining if this transaction by Mr. Buffet is in the best interests of all shareholders. If you have a long-term time frame then this transaction probably makes sense. But for those with a short time horizon you might be better off switching to a stock whose growth profile has excellent prospects under these trying times. The appeal of having available a cheaper stock price by splitting does not avoid the fact that this transaction might be bad timing given the present circumstances facing the USA economy. The commentator has no position in any stocks affecting this recently announced transaction. LOL Looking after your money.

The Dollar as a Reserve Currency

The dollar as a reserve currency is doomed. Emerging economies cannot afford to hold large reserves of US dollar holdings. The US economy is vulnerable to exponential rising debts as evidenced by the continued downward pressure on the US currency's value. Perhaps the biggest obstacle for the dollar is the inability to give an evaluation cost for the new administration's policies. The current law makers freely admit that they themselves have no idea concerning the overall costing going forward when these programs are implemented. Is it any wonder that there is open discussion about doing away with the US reserve currency? Consider the continued massive bond selling by the Fed and the potential build-up of inflation spreading throughout the emerging economies via infiltration of huge amounts of US dollar instruments flooding the world economy. I rest my case. LOL Looking after your money.

The Future of U.S. Consumer Spending: It's a Generational Thing

The future of consumer spending in the US today is not in any way dependent upon demographics. Demographics can have a play in the economic activity in normal situations. But we are not in normal situations. At the present time consumer spending is dominated by the amount of payroll available for consumer spending. And to that you have to add the general state of sentiment. Sentiment is affected by stagnant unemployment. This environment of high unemployment and negative sentiment combined create special situations affecting economic consumer activity. Sentiment is toward saving not spending given the alternative. Unemployment is running between 16-18% and rising. This special phenomena of negative environment alone trumps everything else. Combine the effects of the present unemployment and expectations concerning spending habits and you'll have a better guide to determine which companies benefit from this potentially disastrous situation. LOL Looking after your money.

How Can We Fix the Federal Deficit?

This government refuses to exercise fiscal restraints. The last president was out of control in the same way. Look at what happened to his party when they went to the pools. You cannot wage a costly war against another country without just cause and without support from other major countries. The present administration is out of control. The voters did not give this president a mandate to uproot the present economic system and replace it with a quasi-governmental social system that runs into everybody's face. Now it seems that each administration has their pet projects at the expense of the voting public. Do they not realize that they are holding their children and their children's children hostage for the massive spending that is out of control. No matter how meritorious their programs might be made to appear it is still the cost that must be born by the taxpayer. All anyone wants is a job, food on the table, the government out of their face, and relief from excessive taxation. When government debts are in excess of the trillions and the receipts are in a short fall with no chance in hell of ever being paid in our life time, then how are simple basic requirements to be achieved that ordinary taxpayers not only want but necessarily need? They neither want nor can they afford these pet projects dreamed up by those proclaiming to leave their mark on history. These types of administrations remind you of a sly mortgage consultant telling a high school janitor he can afford a million dollar home on his meager salary of $35,000.00. LOL Looking after your money.

Wells Fargo Earnings: First Leak in the Dam?

If Mr. Ponzi (B. Madoff) concealed his financial books from the warned regulators then it's obviously not hard to believe that the current banks holding toxic assets will hold on as long as the US Fed can keep the interest rates low. As long as that happens the toxic assets will merely sit passively on the financial books and increase like bad-will rather than goodwill. However, if the Fed is forced to increase interest charges then all hell will break out. The housing will be doomed. The banks presently need time for the housing market to turn around. It's unfortunate that the current administration is doing everything possible to hinder that economic stability. Compare the progress China has made with their stimulus program as compared to the Obama failure. I see nothing but weeds freezing over in the US and the cost of vital consumer products like oil spiking and all governmental taxes increasing under the weight of impending insolvency. Why is the dollar tanking? That's the confidence you can trust in. LOL Looking after your money.

Earnings Season So Far: Largely Impressive Announcements, Less than 15% Falling Short

I guess if you set the bar low enough you could almost call it a 100% crap shoot. Emphasis on crap. But then again of those 85% beating how many of them have expectations of increasing revenues going forward? You can't keep cutting expenses and employment to hold the bottom line. LOL Looking after your money.

Bove's Wells Fargo Call Sinks Markets

Why not blame the whole financial fiasco on Dick Bove? The wall street goons need an escape goat. LOL Looking after your money.

The Power of Unintended Consequences: SuperFreakonomics, by Steven D. Levitt and Stephen J. Dubner

Your article attributes the asset bubble as having been created by the interest rate policy of the FED reserve. And since you've drawn that conclusion you implied that it should therefore be alright to give loans to lower income people who cannot afford a down payment and who would like to move in their family. First of all I don't agree that it was the Fed that created the bubble by lowering interest rates. It is much more complicated than that. In any case two wrongs don't make a (good) right. But what really bothers me about your illustration is that you have completely failed to see where the subprime mortgages went off the rail. The so called incentive you've tried to attach as an economic good or bad in your illustration confuses what is illegal behavior. Economic principles are built upon legal behavior. I admit that there can be economic consequences from illegal behavior. But economic principles are not postulated based upon illegal or fraudulent acts. In the subprime mortgage debacle was fraught with immoral, illegal and fraudulent acts.

































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Misrepresented and or fraudulent lender's statements were produced creating false gross debt ratios and valuations. Mortgage brokers routinely misrepresented the fine print of contractual documents to the detriment of the borrower. Credit rating agencies accepted supporting documentation without making background checks. No banker or investor worth his salt would have invested in these toxic investments had there been proper disclosure of checks and balances. So remember, it wasn't solely interest rates that caused the asset bubble. LOL Looking after your money.

The Greatest Depression Is Coming

We are already in the greatest depression since the 1930's as far as the North American economy is concerned. I would wager that the US economy will never escape the economic downward spiral from here until change in the political arena brings about a turfing of both sides of the isle along with those wall street cronies and special interest groups. From day one the president has shown time after time,he remains in the camp of the old guard that advocates blaming the other side instead of engaging all sides while removing real power behind the White House. The tea parties were inspired by Mr. Obama's slogan, "Change you can believe in."
Those are the growing class of people who brought about Mr. Obama's prominence but he has failed them. They are fed-up with the two main parties who continually find themselves mired in controversy and behavior unbecoming of a representative of the people. Change now, it would seem, must come at great expense to those who least expect it. LOL Looking after your money.

Dollar Hasn't Lost Its Reserve Status Yet

Give it time. LOL Looking after your money.

Bond Yields Are Rising? Dollar Will Too

I don't know if I go along with your conclusion that everybody will flock to the dollar as yields go up. The reason for my skepticism is that there might be a structural problem with the dollar itself. At present foreign countries holding American securities are presently cashing in for liquidity because they fear there might be a default down the road. What is the benefit from receiving high yields if your principal could be at risk of default. The same thing applies with US real estate. Why buy cheap property when the investor merely saddles himself with huge liabilities in the form of taxes from all levels of government just to hold property looking for a windfall profit that likely diminished over the length of time property is held. The dollar hit a fourteen month low and there is no support as far as the Fed is concerned. In fact even if there was the Fed is now between a rock and hard place where they really cannot do much without weakening the economy further into the abyss. LOL Looking after your money.