Archive - Aug 2012 - Blog entry

Mr Draghi… a few questions for you…

A Round Up of today's articles. In audio summary!

It's a party in your mouth. Just don't choke.

“If you receive the memo” about radioactive contamination, “don’t send it to us.”

Greece’s climb towards solvency is steep and the underlying question remains; can the country return to growth and reduce its debt before it’s too late?

It ain't safe no more???

The biggest even this week is Ben Bernanke’s Jackson Hole Speech which will take place on Friday August 31. It was at Jackson Hole in 2010 that Bernanke hinted at QE 2. With that in mind, many investors believe that the Fed is about to unveil or at least hint at a similar large-scale monetary program this Friday. We, at Phoenix Capital Research, disagree for three reasons. Number one, stocks are at or near four-year highs. With stocks at these levels, there is little reason for the Fed to use up any of its remaining ammunition.

There are 3 solid rules to follow and understand when buying gold and silver bullion and or mining stocks. Here they are.

We live in insane times. I mean this sincerely.

The reason they don't seem insane is because we have been led here, bit by bit. We are like the proverbial frogs in the pot full of water; the temperature has been turned up very gradually, and we don't notice what a dire situation we're in.

Let's just step back and look at the facts: the entire financial world is breathlessly awaiting the words of a lifelong academic who couldn't successfully manage a Burger King. The most powerful position in the financial universe has been given to The Bearded One, and while all the chatter this week is going to focus on whose Jackson Hole is going to get reamed, the real fireworks will be on September 13th.

Political pressure, fake moral outrage, and ridicule.

Playing the disconnect, for now. 

The weather sucks and the action is all indoors...

If the OCC treated JPM like it dealt with HCBK, Jamie Dimon would be out of a job and JPM would be auctioning off half a trillion in “noncore” assets to its competitors.

For several months now, I’ve been stating that the world’s central banks are in a bind. That bind is that their monetary policies are becoming less and less effective at placating the markets while the consequences of said policies (higher costs of living, the targeting of troubled banks in the credit market, etc.) are increasing.

The EU political leaders are screaming, “It’s all, or nothing!” That stance takes the cards out of Draghi’s hands.

Although the supply and demand factors do not seem to support the current price levels, there are plenty of other events to sustain and add premium.