Archive - Oct 5, 2010 - Blog entry

The current environment of negative real interest rates is the dream scenario for the yellow metal. While Republican promises to reduce the deficit are gold negative, the fact is that their tax cutting proposals are more likely to lead to bigger deficits, not smaller ones. Even if we eliminated all discretionary spending, the government would still be hugely in the red. A rise in capital gains taxes from 15% to 20% would trigger a stampede to take profits before the year end.

?

Ultra-loose monetary policies by the Federal Reserve and the European Central Bank are throwing the world into "chaos" rather than helping the global economic recovery, Nobel Prize-winning economist Joseph Stiglitz said on Tuesday. Is he right?

Oh shit is it on. Japan decided to cut their rates to 0%, the ISM released a number slightly more than a nut hair above guesses, and the lovely yet vibrator-challenged Christine O'Donnell assured voters that she is not a witch (and Money McBags is 95.6% sure that is a real video).

Maybe, just maybe, this will light a fire under the ass of Attorney General of Florida and force him to initiate an injunction on the law firms that perpetrated the frauds… What is it that William Black said?

“The Best Way to Rob a Bank Is to Own One“

Well How about this…

“The best way to stop a criminal investigation is to become one of the investigators“

In an exclusive interview with CNBC on Monday, Oct. 4, Jim Rogers talks about commodities, bond and the currency market.

Is there anything that can stop the Fed? Maybe.

Obama said he would be “very interested” in finding ways to lower the corporate tax rate so U.S. companies operating overseas aren’t disadvantaged so MORE FREE MONEY for our Multinational Masters and Bernanke said he refuses to be out-eased by Japan and he's got a whole fleet of helicopters lined up to dump money on our Multinational Masters as well.

If history is any guide, KPMG demonstratively failed to learn the lesson of their misdeeds during the Crazy Eddie audit. I wonder if they are at least better in covering up their mistakes this time around.

A very well made 45 minute documentary on Goldman Sachs, derivatives, US real estate and the root causes of the Pan-European Sovereign Debt Crisis

Watch out! The Truth is GOING VIRAL! Reggie Middleton discusses residential real estate, Case Shiller and over exuberance on Bloomberg TV.

In 2010 we have crossed into the Twilight Zone of Perpetual Deficits at Social Security.

In preparation for a lost eon, the BoJ took center stage this morning in its latest attempt to form the funniest chart ever (USD/JPY). However, a largely unnoticed speech by Brian Sack yesterday telegraphed an important shift in FOMC policy that will give the Fed ample resources to create its own knee slapper (USD/Everything Else).

When the Fed announced that it would issue its QE lite program in mid-August, the world took this to indicate that QE 2 was definitely coming.

Indeed, virtually EVERYTHING occurring in the financial markets right now can be traced to the view that the US Federal Reserve has a $1 trillion+ QE 2 program on deck. Nowhere is this clearer than the US Dollar.

"Life fades. Vision dims. All that remains are memories. I remember a time of cheap no doc liar loans. McMansioned dreams. This hyper-insolvent wasted land. But most of all, I remember the Subprime Road Warrior. The man we called "Max".