Archive - Nov 2010 - Blog entry

Other than THAT, everything is hunky-dory...

It might go down like this...

The following is the first installment of a 5 part interview with Buffett biographer, Alice Schroeder, who gives us never before released intimate details about Warren Buffett. Pay special attention to parts 2-4 highlighting Buffett's personal side.

In The Seven Fat Years, the classic account of the U.S.’s economic revival in the 1980s, the late Robert Bartley addressed the economic hardship experienced in the 1970s, and specifically spent time on the oil spikes that occurred during the lost decade. Of great importance, Bartley made sure to put “spikes” in quotes when describing the major run-up in oil prices.

Prices aren’t going down forever. The good news is that the next bull market in housing starts in 20 years. That’s when 85 million millennials, those born from 1988 to yesterday, start competing to buy homes from only 65 million gen Xer’s. By then, house prices will be a lot cheaper than they are today. The next interest rate spike that QEII guarantees will knock another 25% off prices. Think 1982 again. Fannie Mae and Freddie Mac will be long gone, meaning that the 30 year conventional mortgage will cease to exist. Just remember to sell by 2060, because that’s when the next intergenerational residential real estate collapse is expected to ensue.

Created by The Applied Finance Group, The Economic Margin (EM) Framework was developed to evaluate corporate performance from an economic cash flow perspective and is an alternative to accounting-based valuation metrics. EM measures the return a company earns above or below its cost of capital and provides a more complete view of a company’s underlying economic strength.

BoomBsutBlog and the independent analysts vs Wall Street: I(we) say insolvent, or damn close, they say buy. Hmmm!!! Judging by affiliation and track record, who do you think is right?

It is peculiar that the firms that don't underwrite securities or sell information services are the most bearish on the banks, isn't it? Even the constant "just shut up and buy 'em" banks missed the ball on Google!

Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.

Sample Ballot--NYC plus more...

The market ran in the morning today on the strength of China manufacturing the fuck out of some shit before falling in the afternoon after realizing that most Americans can no longer afford to buy the fuck out of that same shit (except of course for iPhones, because...

Nouriel Roubini, Laurence Kotlikoff, Steve Keen, Michel Chossudovsky, the Wall Street Journal and Hyman Minsky agree ...

Don't underestimate the contagion effects of state pension meltdowns...

What is China’s secret? According to financial commentator Jim Jubak, it may just be “creative accounting” -- the sort of accounting for which Wall Street is notorious, in which debts are swept off the books and turned into “assets.” China is able to pull this off because it does not owe its debts to foreign creditors. The banks doing the funding are state-owned, and the state can write off its own debts.

What do you do, vote for the feckless "bought" Democrat, the feckless bought Republican or the Tea Party unknown unknown?--You are in a proverbial "no win" situation.

Someone has to lose but, in this case, the loser is the Federal Reserve Bank of the United States of America – which plays the part of the perennial sucker as they are willing to sit down at the table and be taken for all they have two or three days a week. And why are they willing to be so generous? BECAUSE IT’S NOT THEIR MONEY!