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eggfaced

eggfaced
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  • Bad calls, no accountability... stock analysts "don't have a clue," and their forecasts rarely offer anything valuable, Eric Jackson writes. Case in point: "Last November, most Wall Street analysts covering SINA had 12-month price targets in the $50-$60 range. A few weeks ago, the stock hit $90. And guess what the analysts did? They upgraded their 12-month price targets to… $80. Wow."  [View news story]
    I'm sure if any analyst ended up being right consistently they would be accused of insider trading, securities fraud, etc.
    Mar 29, 2011. 02:41 PM | 2 Likes Like |Link to Comment
  • If Citigroup's (C) reverse split is intended to spark interest in owning the stock, the move could backfire, Morgan Stanley’s Adam Parker warns: "Most companies underperform the market following a reverse split... Investors may see reverse splits as a gimmick - or worse - a sign of desperation on the part of management, rather than a positive signal of future prospects."  [View news story]
    It seems to make sense now that banks are allowed to issue dividends once again. Citi had 29 billion o/s before the split so paying even a penny dividend would be too costly. Since you can't have a dividend less than a penny, a reverse split will makes it cheaper and they don't miss out on the dividend party.
    Mar 22, 2011. 02:49 PM | Likes Like |Link to Comment
  • The next time you hear Republicans declaring their concern about deficits because of the future of our children, "remember that the clear and present danger to the prospects of young Americans isn’t the deficit," Paul Krugman writes. "It’s the absence of jobs."  [View news story]
    Fed Funds Target is at 0-25 basis points. The printing presses are running full steam and the Fed is buying 70% of treasury debt and who knows what else. Explain how monetary policy can become any looser?

    The risk of the Fed's losses are huge to the American public. Inflation is the result because the Fed has full and exclusive control to print money. Inflation is a huge tax not just on earnings but also principle.
    Mar 18, 2011. 03:55 PM | 7 Likes Like |Link to Comment
  • The next time you hear Republicans declaring their concern about deficits because of the future of our children, "remember that the clear and present danger to the prospects of young Americans isn’t the deficit," Paul Krugman writes. "It’s the absence of jobs."  [View news story]
    So somehow the two aren't related? Government spending usurps money from the real economy either by taxes or sucking money from the capital markets. When government jobs are created they destroy even more private sector jobs. So the two are very closely linked to each other. Cut the deficit, cut government, and (real) jobs will be created.
    Mar 18, 2011. 03:45 PM | 13 Likes Like |Link to Comment
  • Can Copper Recover? [View article]
    Chinese tightening via interest rates hikes and reserve ratio increases will not do much to dampen inflation. Until China lets its currency rise substatially to soak up inflation they will continue to see rising prices. Short term this will push up the price of copper valued in US dollars. If China's inflation is not properly dealt with eventually then it could crush real demand as a larger percentage of wages will be spent on food and other necessities. So long term I see China forced into tightening monetary policy and letting the Renminbi rise, which it bullish for copper. Since most of the demand comes from China, this will keep their prices and economy stable and their current consumption will increase. As for supply, it still remains constrained and that should continue for the foreseeable future.
    Mar 17, 2011. 08:29 AM | 1 Like Like |Link to Comment
  • "Demographics, if nothing else, dictate that" the dollar will lose its dominance, says Barry Eichengreen in a Q&A on the future of currencies. "It will make no sense for the dollar to be the only true global currency in a world where the U.S. accounts for 15% or 20% at most of real economic activity." (previously)  [View news story]
    Gold is the only true reserve currency that will work...can't print it to oblivion.

    Remember, a complete fiat reserve currency is only a 40 year experiment. Gold has been money for thousands of years and fiat money has always failed in every society that has ever tried it.
    Mar 17, 2011. 12:16 AM | 1 Like Like |Link to Comment
  • "Complete bunk" is Peter Schiff's view of the notion that Japan's rebuilding might actually boost its economy. “Resources used to rebuild are not available for other purposes"; instead of adding new infrastructure or producing more goods, those resources now merely replace what they lost. Still, the near-breakeven rally of the top Japan ETF (EWJ -0.2%) may show that the idea has believers.  [View news story]
    Awesomely put.
    Mar 16, 2011. 07:49 AM | Likes Like |Link to Comment
  • "Complete bunk" is Peter Schiff's view of the notion that Japan's rebuilding might actually boost its economy. “Resources used to rebuild are not available for other purposes"; instead of adding new infrastructure or producing more goods, those resources now merely replace what they lost. Still, the near-breakeven rally of the top Japan ETF (EWJ -0.2%) may show that the idea has believers.  [View news story]
    Tack, where will they get the resources to rebuild? They must draw them from somewhere. Japan's problems are not lack of demand. I think they stem more from government not letting prices fall to where people will demand them. They had a massive asset bubble that was never allowed to reset to natural prices.
    Mar 15, 2011. 08:02 PM | 5 Likes Like |Link to Comment
  • The U.S. is not “printing money” uncontrollably and flooding the world with dollars that will lead to hyperinflation, Cullen Roche writes. "Yes, the U.S. government is running a massive $1.5T deficit, however, by any metric of money supply we can see that this is barely offsetting the continued de-leveraging that is occurring across the U.S. economy."  [View news story]
    The banks aren't keeping it. They are lending it back to the government so they can deficit spend.

    The Government continues to deficit spend and will do so for the foreseeable future. So QE2 keeps interest rates low (per design) and the Government can continue to borrow and spend more.
    Mar 8, 2011. 05:09 PM | 8 Likes Like |Link to Comment
  • Why Silver Is Grossly Undervalued and the Myth of the 'Primary Silver Mine' [View article]
    LOL - good analogy, I hate Nickelback.
    Mar 8, 2011. 09:07 AM | 4 Likes Like |Link to Comment
  • The Fed Has No Idea What It's Doing [View article]
    No, Austrian economics is like dealing with cancer by cutting it out immediately before it spreads to other organs. The cancer started in the housing market and spread to banks. Now with the helping hand of out government and Banana Ben, it is infecting every American.
    Mar 8, 2011. 08:53 AM | 18 Likes Like |Link to Comment
  • Why Silver Is Grossly Undervalued and the Myth of the 'Primary Silver Mine' [View article]
    Great article...it appears the price of silver has a long ways to go based on supply/demand. In order for more silver to hit the market the price is going to have to rise substantially. Miners are probably content to keep their silver production the same as long as the other metals like lead and zinc are increasing in price as well. So increasing prices of other metals are only a good thing for silver.
    Only a huge spike in prices will really get producers to up their silver output and that could take years. The demand story is certainly clear with investment and industrial use eating up every once produced. Also as gold rises higher and higher, demand for silver will start to pick up even more as silver is cheaper.
    I think we are just starting this wild ride.

    What are some of your favorite silver mines/stocks? I will be looking for ones that have been historically considered lead or zinc mines and have a smaller percentage of silver production. They are still way undervalued.
    Mar 8, 2011. 08:47 AM | 7 Likes Like |Link to Comment
  • The Fed Has No Idea What It's Doing [View article]
    bbro, the medicine must be taken. We have had a huge credit expansion brought on by cheap money, government intervention, and moral hazard. Capital was badly misallocated and these bad investments must be eradicated so the economy can heal and be rebuilt on sound footing. Will this result in a depression? Possibly, but what we are headed for is much worse. Inflation and rising interest rates are going to demolish the fake recovery. We can't keep going into debt to spend more money to keep our phony economy alive. It just isn't sustainable.
    Mar 8, 2011. 08:08 AM | 19 Likes Like |Link to Comment
  • While Bill Gross urges everyone out of U.S. dollars and debt, Laurence Fink (BLK) is a "big buyer" of the greenback and would buy Treasurys if yields crest 4%. It's not the first time Fink (leading the top money management firm) has diverged from the views of Pimco's Gross.  [View news story]
    People holding treasuries akin to sitting in a crowded movie theatre before someone yells "FIRE". Very dangerous game. I am leaving the movie early.
    Mar 3, 2011. 11:15 AM | 1 Like Like |Link to Comment
  • A government desperately in need of every bit of revenue is squeezed by the "I don't pay" movement in Greece. Fed up by a seemingly unaccountable political culture, frustrated Greeks are refusing to pay for public services such as road tolls and bus fares.  [View news story]
    When the teat is removed the baby cries...
    Mar 3, 2011. 10:56 AM | 1 Like Like |Link to Comment
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