• Monetary Metals
    05/02/2016 - 01:28
    The price of gold shot up this week, and silver moved proportionally. Headlines are screaming for gold to hit $10,000 or $50,000. Does this alleged new bull market have legs?

Arbing Refi And High Dividend Event Risk

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Tue, 10/26/2010 - 13:51 | 678106 walküre
walküre's picture

"(why else would someone lock up capital for 50 years even as the S&P trades at 2011 highs?)"

This needs some clarification or it is just too funny.

Tue, 10/26/2010 - 14:02 | 678129 traderjoe
traderjoe's picture

Upon watching the GS 50-year bond, it became obvious (to others probably much earlier) that this whole Fed re-liquification was about bonds and not stocks. Sure, getting the stock market up was an icing on the cake, but the bond market was the real prize. 

As many of us believe, the Fed's raison d'etre is to siphon as much wealth as possible from the public to the banks/its owners (which you might include the mega-corporations and the MIC). Driving interest rates to zero forces savers to commit their money to the bond market - to do anything for any semblance of yield. It has been a massive transfer of wealth - and has allowed for many Fed constituents to profit. I remember when in the Fall of 2008 when junk bonds traded at 50 cents on the dollar and liquidity was zilch. Now these same bonds trade for over par.

And now the trap is set. Not that the Fed wants to have anything collapse, but they have failed to blow another bubble in the economy. No organic loan growth = failing ponzi. And the savers are committed, and will be wiped out. 

Tue, 10/26/2010 - 14:09 | 678154 unum mountaineer
unum mountaineer's picture

cool avatar joe. i'm thinking about getting one me-self..im lazy about that kinda shit tho. going to start abbrvtns w/ 0 vwls!

Tue, 10/26/2010 - 14:18 | 678176 traderjoe
traderjoe's picture

Thx. Bob allowed me to use his (he just did his yesterday). His is the original V in red (from the movie). I just changed the color/contrast. Feel free to take this one if you would like, and play with the color. Seems appropriate if you are angry about the rising fascism (or whatever 'ism you choose).

Simply right click on the avatar, save it to your desktop, edit it with a basic color editor (maybe white background?), and upload in the "My account" section.

Just passing Bob's offer along...


Tue, 10/26/2010 - 14:07 | 678147 Hondo
Hondo's picture

Corporations increasing their debt in the capital structure and reducing equity...in an environment where top line growth is meager at best is a recipe for complete collapse.

Tue, 10/26/2010 - 14:22 | 678180 frankTHE COIN
frankTHE COIN's picture

We have a date when QE2 will be announced and commodities are up 40 - 50% and the S&P 500 has factored it in with this rally. For comparison:

The first Gulf War was the first time we had a War By deadline. We knew the exact date it would start and all the mkts ran up and factored it in. On Jan. 17, 1991 when the bombing began ( overnight for us ) the mkts rallied initially then Fell out of the Sky. Crude oil opened the next day locked limit down. The spot month fell $ 10.00, and this was when the limit was expanded from its normal $1.00 limit either way.

Even though we bombed for the next month before ground troops began (it took 100 hours to wrap it up ) crude had fallen from the record high in the  $ 30s to $ 17.00. The point being that we did'nt know the outcome for a month before ground troops entered but the sell off happened the first day and stayed down.

If they dissappoint with QE2 it could get ugly.

Tue, 10/26/2010 - 14:22 | 678186 prophet
prophet's picture

I wonder which is more damaging: fallacious economic theory or accounting alchemy.


Tue, 10/26/2010 - 14:39 | 678223 unum mountaineer
unum mountaineer's picture

neither is as damaging as the giant herpes you get from giving fellatio to the aforementioned..lots of cheerleaders fell of the wagon me thinks....too ashamed of simplex A..that and the riots in the street



Tue, 10/26/2010 - 15:26 | 678389 b_thunder
b_thunder's picture

does anyone still remember summer 2007?  the unending stream of stock buybacks, mainly by wall st banks and maynly on borrowed $$$$?

Bear, Lehman, Merril - all had $10B+ buybacks, just as market hit all-time highs.  imagine if 12 months later they had all that cash available....  well, not to worry, certain people cashed out at the top, sold their shares directly to the BSC's, MER's and LEh's treasurys...  at the top!  and the rest of shareholders are suckers anyway.


Thu, 10/28/2010 - 05:41 | 682745 Parag
Parag's picture

Even now, great investors are investing in yellowish metal at ranges unseen in decades, to guard towards fluctuations while in the really worth of currencies. Small investors are fleeing the stock options neighborhood in droves, favoring bonds and even money over equities. Companies have managed to market bonds that do not pay away for 50 or even 100 years.

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