Archive - 2012 - Blog entry

The “signature” appetizer is the “Linda Green Onion Dip.”

Something different from me today. A BK video!

Let’s cut the BS here. The Fed has maintained a more than highly accommodative stance for three years now and U-16 unemployment, food stamp usage, home prices, and virtually every other economic metric indicate that they’ve done little to boost the US economy in any meaningful way. QE has and always will be about boosting asset prices in the hope that the Fed can stimulate a recovery by getting the S&P 500 to some level.

For breathtakingly stupid political ideas and catastrophic “solutions” to America’s biggest problems, it’s hard to beat the New York Times op-ed page.  There, joined by such jihadists of the Left as Frank Rich and Maureen Dowd, resides the peerlessly wrong-headed economist Paul Krugman, whose Nobel Prize was as well-deserved as the one Yasser Arafat received for helping to bring Peace to the world. Until yesterday, we might have thought Krugman had cornered the market for the absolute worst ideas on how to revive the economy.

GGP part deux, as the hopium high sold by US regulators that allowed banks and borrowers to pretend bad loans were good wears off and reality sets in..

All you need to read.

For a new investor in gold and silver, here is the most lucid piece of advice I can offer. Identifying severe undervaluation points in gold and silver, buying gold and silver assets during these times, and not worrying about interim short-term volatility, even if the immediate volatility is downward, is much more likely to impact your accumulation of wealth in a positive manner than trying to perfectly time market tops and bottoms in the highly manipulated gold and silver game.

It’s in their blood.

"It takes a very unusual mind to undertake the analysis of the obvious."--Alfred North Whitehead

I think Bernanke is going to get his balls squeezed.

www.southofwallstreet.com

In today’s comments from David Rosenberg (well worth the subscription) he presents a quote from Dr. Lacy Hunt of Hoisington Investment Management that struck me as particularly insightful.  We would all be better equity investors, long and short, applying the same logic to company fundamentals.  However, noise is plentiful in a High Frequency world and commotion drives revenue for service providers. 

Even American military and intelligence chiefs admit this ...

CFTC article from 1993 warned of dangers of SIPA liquidation for a futures broker. So why Ch 11 for the parent company, which destroys customer rights?

Former member of the Bundesbank and the ECB: The case of Greece is hopeless, a fiscal union won’t work, and they all know it.

At some point, the market will force the issue of whether or not the ECB is going to be monetizing everything or not. Germany, having already seen the ultimate outcome of monetization (Weimar) has already made it clear that it will not tolerate this.