sixpackistan

Update: Gold Mining Stock Hedge Ratios

Great idea. Good suggestions. Thanks.

Gold Is Not in a Bull Market

india just bought 200 tonnes of gold yesterday. i guess he was busy talking about the fact that gold was not in a bull market while this was happening.
in addition, one key thing he misses is that the gold bull market - there is one clearly - started in 2002/3 and has been running ever since. i don't understand- the dollar hasn't been crashing for 7 years.
people were saying this kind of stuff when gold hit 400 an ounce- i remember it clearly.
if you pretend there is not a bull market where there is one then shame on you. you either recognize a trend for what it is or you don't.

Recession Is Over; Depression Has Just Begun

Brilliant. Thank you.

Ron Paul Confronts Fed About Gold Dealings

Ron Paul is the last patriot in government. It will be a sad day when he is gone.

Time to Take Profits in Gold Miners?

short term you are right- take your profit in AUY. however, i still see it as a takeover/acquisition target at current levels so it's a risk that you may miss the bump on that...if it happens...anyway, good article.

Do Gold's Recent Moves Indicate Global Confidence in Currencies Is Unraveling?

Great article bud.

Essay on Macroeconomics: Where Krugman Fails

amen


On Sep 07 12:59 PM LKofEnglish wrote:

> Krugman has his Nobel but Lord know he ISN"T a Nobel. In other words
> he hasn't innovated and indeed appears to have done nothing more
> than regurgitated. (Or is it that other thing guys do?) Productivity
> happens and is happenning BIG TIME now. How can one argue with the
> market? It collapses, government intervenes MASSIVELY and the government
> claims to be powerless to prevent double digit unemployment for the
> forseeable future? What do we pay the Federal Government for? I
> don't see how any rational person cannot see this as a "victory"
> (for all the wrong reasons) for the monetarists. THEY GOT THE PRIZE
> AND THAT ISN'T OIL. The prize, of course, is TO BE THE GOVERNMENT.
> The only thing that happened this past year is that the American
> people have been awakened to the (isn't it always?) obvious fact
> that Washington DC could care less about "the people's" livlihood
> but sure do care about their own. "Moral hazard." Only Wall Street
> could have such a "ready reserve" of terminology. "Here, we'll help
> you Mr. Scaredy Cat Politician." THEY DON'T HAVE ANY MONEY TO BEGIN
> WITH UNCLE SAM! STARVE 'EM TO THEIR LAST PENNY AND YOU MIGHT EVEN
> GET REELECTED. I can't believe it. AND THEY CALL THEMSELVES DEMOCRATS
> NO LESS!!!!

China Diversifying Out of U.S. Dollars: Bullish for Gold

The way I see it, it's not so much that the Chinese are wise- it's that they're not stupid. Wealth can't be created with a printing press- only destroyed.

Merkel on Falkenstein's 'Finding Alpha: When Risk and Return Break Down'

big chief say you type much and say little.
pass the alpha.

On Sep 05 10:55 AM whidbey wrote:

> This is a chase that started some 100 years ago: pursuit of advantage,
> defined as "alpha". The concept of alpha itself may be just the
> phenomenology of hope. The hope being that there is some way to
> achieve an advantage over market return. It is considerable reservation
> that one believes alpha exists in fact. That said one can attempt
> to define alpha.
>
> The search commences in time, years in a series, many errors are
> based on the time series selected. Next, Analytic techniques are
> not "truth" per se, but " a point of view". In essence, one must
> be consistent in technique to avoid confusion (and learn anything)
> which is very difficult to do. Just since I got my doctorate the
> changes in financial theory have been voluminous, and dressed up
> with more mathematical statistics than are productive;( I think of
> them as chiefly makeweights to mundane theory). Finally, No one
> wants to appear to have lost, so much "touch-up" work is done in
> both the literature and the results of analysis.Technique Advocacy
> in is rarely criticized in Academia, nevertheless the advocates create
> cliques whose work is to further a theory/technique as the sole/best
> means of understanding a problem: modern portfolio theory is a prime
> example.
>
> Having read the book I found it pedantic, pedestrian, and narrow,
> but if one wants to see what is currently one the table, read it,
> but not too deeply please.

The Origin of Wealth: Differentiate, Select, Amplify. Repeat.

amen. lower manhattan doesn't create, manufacture, design, build or really do anything other than stand in the middle of every transaction in america- just like, say, it's biggest partner and supporter: the federal government. go figure. i wonder who learned from whom?


On Sep 05 03:57 PM Bull Run wrote:

> The origins of America's wealth has been the wealth of it's middle
> class. No other nation in the history of the world had a middle class
> which encompassed such a large percentage of it's population, which
> was as wealthly as America's. Steal workers, Auto workers, Farmers,
> shop keepers, were all part of this enormous population of middle
> class, which owned 2 cars, a home, a summer cottage, and were able
> to send their children to college. This middle class, contributed
> wealth and real production to America, unlike today's Wall Street
> wealth, which has NO GDP, or contribution to production. This was
> the America that the rest of the world envied. America's lifesyles,
> and it was this mass of wealth that America's Middle class had built
> up,that was now coveted, by Wall Street, particularily after the
> mid 70's when America's real growth period was over. Hence the beginning
> of Wall Street scams. (Exotic investment vehicles). 1) S&L government
> backed loans. 2) Junk bond scam 3) The wwwdotcom scam.4) Turning
> the NASDAQ into a venture exchange 5) Stock options instead of dividends
> 6)Wall street's finest hour, the sub prime loan scam. 7) Wall streets
> latest, Life insurance into asset backed bonds scam. America now
> has lost it's middle class. America's homes and jobs that could support
> this lifestyle are all but gone... Where did this wealth all GO??
> Over the last decade, 41% of all domestic profits, have gone to NY
> investment banks, NY brokerage firms, NY banks, NY managed funds.
> This then ends up in less than 2% of America's population, NOT in
> America's middle class, but in a very small tight community of Wall
> Street insiders living in Green. Conn. Is this the capitlism that
> Adam Smith invisioned?? All of America's wealth originated in America's
> middle class, which has now been transfered to Wall Street. History
> will look back on America, and question the moral and ethical transfer
> of wealth, which has brought down the wealthest nation on earth.

Four Reasons We're Headed Even Higher

I hope you're right and think you're wrong.

3 ETFs for the Weakening U.S. Dollar

Nice. Good article.

Return of the Dollar?

I like to think of the dollar as a share of the US Government/Economy. With that in mind, I believe the long term trend of the dollar, so long as the government continues to pile up massive debt and print money at will, is downward. Any sudden fluctuations in value are probably just that: fluctuations.

Just my 2 cents.

24 Trillion Reasons to Buy Gold

good point- the Chinese, in fact, have been loading up on copper! follow the smart money.


On Jul 21 11:22 PM Ricard wrote:

> I think instead of gold, the Chinese will aim for commodities with
> more utility. Why buy gold when the only thing it anchors are sick
> economies?
>
> I'd aim for others (especially oil and aluminum, note CNOOC and Chalco),
> and keep in mind that SILVER is what dominated the Chinese mindset
> for centuries, not gold.

Forget Goldman, Start Worrying About the Government

Good point. There are so many ex-goldman employees in government that it's hard to tell the difference between the two sometimes.