This page has been archived and commenting is disabled.
Marc Faber: "I Think We Are All Doomed"
All who enjoy hearing a meaty Marc Faber fire and brimstone sermon, that cuts through the bullshit, will be happy to know that the Gloom, Boom and Doom author conducted a 40 minute interview with the McAlvany Financial Group, which covers all the usual suspects: gold, silver, precious and industrial metals, the "crack up boom", the future of the Ponzi and capital markets in general and much more. Of course, it wouldn't be a Faber interview without the requisite soundbite: "I think we are all doomed. I think what will happen is that we are in the midst of a kind of a
crack-up boom that is not sustainable, that eventually the economy will
deteriorate, that there will be more money-printing, and then you have
inflation, and a poor economy, an extreme form of stagflation, and,
eventually, in that situation, countries go to war, and, as a whole,
derivatives, the market, and everything will collapse, and like a
computer when it crashes, you will have to reboot it." Of course, on a long enough timeline...
Key extract from the Faber speech:
I think we are all doomed. I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate, that there will be more money-printing, and then you have inflation, and a poor economy, an extreme form of stagflation, and, eventually, in that situation, countries go to war, and, as a whole, derivatives, the market, and everything will collapse, and like a computer when it crashes, you will have to reboot it.
For the investor, the question is: How do I navigate through this complete disaster that is going to unfold? And I think if you look at different asset classes – real estate, equities, bonds, cash, precious metals – I suppose that you have to be diversified. I think real estate in the U.S. may go down another 10% or so, or even 15%, but I am always telling people, if you can buy the piece of land or the house you like, what do you actually care if it does down another 10%? If everything I bought in my life had only gone down 10-15%, I would be very rich, because a lot of things became worthless, especially loans to friends, and bonds, and so forth.
Look at the history, for example, of Germany, for the last 100 years. They had World War I. They had the hyper-inflation in World War II. The bond-holders got wiped out three times. If you owned Siemens, and you still own Siemens today, it was not a fantastic investment, but at least you still have something. You were not wiped out. I think that in equities you will be better off because you have an ownership in a company, than by being the lenders to companies, and the lenders, especially, to governments.
Faber on the key distinction between nominal and real, which nobody on CNBC seems to grasp yet, why gold now is cheaper than it was in 1999, and on the Dow and gold reaching parity.
In a money-printing environment, it is very difficult to know what is actually cheap and what is expensive. Is the price of wheat high, or is it low? Inflation-adjusted, it is extremely low. In nominal terms, it is relatively high. I believe that, in March 2009 when the S&P was at 666, the market was actually much cheaper than is generally perceived, because of the money-printing, and I do not anticipate that we will see 666 on the S&P again, in nominal terms.
In other words, they are going to print so much money that the S&P could be at, perhaps, 2000, but in real terms, it could be down below the lows of March 6, 2009. Maybe in gold terms, we could one day reach a ratio of Dow Jones to gold of 1-to-1, as we were in 1980. In other words, the Dow could be perhaps at 10,000 or 12,000, and gold could be at the same level.
That is why I am advising people to accumulate gold. Can gold have a correction? Yes, there has been a little bit too much euphoria about gold, and we may have a correction, but I do not think we are in a bubble in the price of gold. In fact, I could make a case that gold, at this level of $1400 an ounce, is cheaper than in 1999, when I look at the unfunded liability growth of the U.S., at the credit growth of the U.S., and at the household growth, and at the money printing, and at all the wealth creation that happens in China and Russia.
Full interview:
(complete PDF transcript)
»
- 77627 reads
- Printer-friendly version
- Send to friend
- advertisements -
"... It's the only way to be sure."
It will be far stranger, scarier and more soul destroying than Mr Farber could even imagine. These guys miss the more important details of planetary change and what it portends for humanity. Watch the mess. It should begin in full swing...2011. Watch Tokyo, San Fransicso etc etc etc
http://earthquake.usgs.gov/earthquakes/recenteqsww/Maps/region/Asia.php
That is in the last week. Put your cursor over the quakes and they will give you the location of the activity relative to Tokyo, when you click on to the "detail" screen. It's going to get hit eventually.
I used to live on the Sagami fault just outside Tokyo, experienced about a quake a month for
3 years, nothing serious. All the locals were saying that the big one is long overdue.
I have been watching this and animal deaths.
Right before New Zealand quake- just hours- 107 pilot whales washed ashore half dead: http://www.youtube.com/watch?v=xCXzjgMiNxA
There has been a massive amount of animal deaths along GoM tectonic plates (possibly a hidden one per former Texaco Geophysicist Dr.Jack Reed) and in the New Madrid Fault Line Area. Mass Animal deaths have been taking place around the world for almost two months now. The deaths are around fault lines and tectonic plates. SOFCOM is not covering this. The Residents in the NMFZ and GoM are feaking out. There has been a massive series of temors in that area.
The guy delivering following information seems a little *nuts* but his information is spot on.
http://www.youtube.com/watch?v=TuYJ76t8hkc
List of animal deaths:http://beforeitsnews.com/stories/in/0000000000000169
More info on HAARP:http://www.youtube.com/watch?v=2ul7Q5Wcu0g
Additional info:
http://www.youtube.com/watch?v=lcF5a-WhkXY&feature=player_embedded
FEMA:http://www.fema.gov/txt/media/factsheets/2010/dod_cat_earthquaker.txt
Ganja! That is the first reasonable explanantion I have seen re the animal die-offs in Arkansas (etc.). Thank you for bringing that to our attention.
A BIG quake in the New Madrid area would reset everything (Tokyo and California as well of course).
If the earthquakes and volcano start coming in like some say, that will really hurt. Recall the "little" volcano in Iceland shut down a lot of European airspace for several weeks.
You'll find this interesting: http://www.theglobeandmail.com/news/national/british-columbia/starving-e...
and Fault line/volcano map; look @ vancouver island and vancouver area: http://library.mcmaster.ca/maps/images/faults.gif
Dr.Jack Reed: http://www.aapg.org/explorer/2002/11nov/rift_zone.cfm
Sorry, I can't find the map that showed volcanos but when I do-thought i bookmarked it- I will edit & post.
http://www.youtube.com/watch?v=H75gcnqACYA
Looks like BC is up for a EQ.
- opps
http://www.youtube.com/watch?v=mgVrvsJxnrM
... and disappearing earthquakes
http://www.youtube.com/watch?v=oAPKCo5idXI
Thanks for these; it saves me so much time exploring the anal vaults of the internet.
"If the earthquakes and volcano start coming in like some say, that will really hurt."
Don't forget Yellowstone Caldera, way overdue for eruption, estimated 130 cubic kilometers erupting magma if entire caldera unzips like before, ash would pretty much wipe out everything east to Atlantic ...then circle the globe ...orders of magnitude bigger than Tambora ...possible ELE.
If Yellowstone erupts, as you point out, then the entire planet will feel the effects. This will likely constitute an ELE.
http://www.nasca.org.uk/supervolcano/supervolcano.html
http://www.unmuseum.org/supervol.htm
Art Bell b in the "radio hall of fame." Unfortunately, he could not be reached for comment. - Ned
noticed that when oBLAHma took power, all these calamities started to occur. isn't that what antichrists do?
Obama is the same as 'W' as is the same as Clinton as is the same as Bush Sr. as is the same as Regan as is the same as Carter all the way back to JFK, whom I argue, was the last president of 'the people.' They're all a different face of the same beast: 'Illuminati,' 'NWO Cronies,' 'The Banking Cartel,' 'Robber Barons,' 'Elistists' ..whatever you want to call them.
Obama isn't an/the antichrist or a socialist, he's a fascist.
The Black Death
Dead littered the streets everywhere. Cattle and livestock roamed the country unattended. Brother deserted brother.
The Black Death was one of the worst natural disasters in history. In 1347 A.D., a great plague swept over Europe, ravaged cities causing widespread hysteria and death. One third of the population of Europe died. "The impact upon the future of England was greater than upon any other European country." (Cartwright, 1991) The primary culprits in transmitting this disease were oriental rat fleas carried on the back of black rats.
http://static.howstuffworks.com/gif/black-death-1.jpg
http://static.howstuffworks.com/gif/black-death-3.jpg
http://i3.squidoocdn.com/resize/squidoo_images/-1/lens1592674_1277310495...
I know what it is and I *highly* doubt this will be the case.
yep. Time to climb to the top of that mountain and wait to get beamed up.
I've read different hypotheses as to the cyclical nature of this cosmic event. The periodicity cannot be scientifically proven without direct observation, although the 26,000 year pole shift cycle seems the most plausible.
The South Pole is apparently not shifting at the same rate as the North Pole.
http://globalrumblings.blogspot.com/2011/01/pole-shift-north-races-south...
Interesting times that we live in.
I have been half-assed in following this. Thanks for the link.
I get frustrated b/c I am sick of all the 'Planet X' stuff. I haven't totally dismissed it as most important information (and technology) is kept from the public as a general rule.
I do think this 2012 solar storm is interesting: http://www.youtube.com/watch?v=4_TzIUlaQok
I filter out the spin. Just after information.
When the MSM begin warning their audiences about these things, you know that the global elite are concerned. The danger from a super-massive CME is real. It would take us all back to 1850's level technology in the span of an hour or two. Couple that threat with a weakened or compromised magnetic field, and ambient air temperatures might exceed that which is conducive for life.
Yeah, the Planet X / Nibiru thing is interesting, although there seems to be a lack of credible data which might support it better, ancient Sumerian tablets notwithstanding. The hypothesis also seems to lose credibility when there is a book/DVD being solicited.
I'll accept any hard scientific data over myths and legends any day.
So, my needlegun would not work, but my chemical lead-thrower still would? Sweet!
There. Fixed that for you.
http://theblissfulignoramus.com/2011/02/26/the-peoples-nwo/
You fixed nothing.
There's a good reason why underground bunkers and seed vaults are being prepared around the world.
(Hint: they're not intended for you, prole.)
You've seen these bunkers and "seed vaults" - and the seeds in them - with your very own eyes, I take it?
Or, just read stories, seen some "photos".
I recommend watching "Wag The Dog" -
http://www.youtube.com/watch?v=EnSauj2855M
Rule 14
Norgez really sensitive about location of all of the 'caves'. Lotsa' Norwegian Steam went into digging into fricken' granite holes, now used for keeping stuff stored.
- Ned
I believe it, Ned.
The Norwegian government seemed to freely advertise the location of their seed vault inside the Arctic Circle. People like me wonder why they would take no apparent precautions to ensure secrecy during construction.
its all there man
http://www.dailymail.co.uk/sciencetech/article-1356748/Search-Tyche-believed-largest-planet-solar-system.html
The "Kozai Mechanism" may explain the elliptical orbits that are shared amongst all the known planets in our solar system. If we do in fact live in a binary star system, and what is being theorized as "Planet Tyche" may really be a brown dwarf companion star, then the cyclical nature of Extinction Level Events may be better explained.
Kozai Mechanism:
http://www.orbitsimulator.com/gravity/articles/kozai.html
http://adsabs.harvard.edu/abs/1997AJ....113.1915I
"I'll accept any hard scientific data over myths and legends any day."
Anyone know what happened to (NASA / Hubble?) photos of something really huge parked out there close to Saturn?
My take -
Carrington event? Theoretically possible.
"Planet X"? Fucking bullshit.
No kidding? Maybe because it acutally happend?
Yeah, a 1* pole shift would just about do it.
Michael Lewis on CNN today:
So there is - very clear that there's reckoning in the future, exactly what form it takes is less clear. I mean, it is incredible where we sit right now. If you told me in - in early 2009 that all of these big Wall Street firms would be back even bigger and paying big bonuses and essentially socialized, and then their loss is socialized but the gains privatized and that the American people would put up with it? That's the incredible thing is that there isn't a social revolution.
Full transcript: http://transcripts.cnn.com/TRANSCRIPTS/1102/27/fzgps.01.html
Michael Lewis has seen his best days.
That quote was almost below average, completely uninformative, and a waste of the ether.
I have seen three interviews with Lewis and each one was more dismal than the one before.
"Liar's Poker", is and has been his great contribution. Now he ought to retire instead of using his brand to write and say things that the local "Git 'n Go", Pakistani national already knows.
And his naivete about how to begin a revolution is ignorant in the extreme. As if the american people can simply, "socially" revolute.
What a douchebag.
Maybe, but I thought it was a rather Durdeneque statement to hear from a mainstream celebrity author on a MSM chat show.
You think "revolute" is a word, and call *him* a douchebag?
Jeesus (sic) Maybe I should have put an (SIC) at the end of 'revolute' so that the short bus posters might know when a literary license is taken.
And since it wasn't a word, now it is. Feel free to use it with complete freedumb.
"The Big Short" was decent, but at the time of its release, it was just another me-too book on the 2007/8/ongoing financial crisis.
I like that douchebag, which probably makes me one, too. So be it. Maybe I'll put it on a t-shirt.
Lewis writes well, maintains a sense of humor, covers subjects well and usually adds an odd touch or anecdote to each one. The Big Short was quick, entertaining, alternatively infuriating and belly-laugh funny, and tossed some shame and ridicule on people who most of all hate being ridiculed. His recent article in VF on Ireland covered that disaster as well as anything appearing anywhere in print.
Even if gloom and doom is correct, and it really is TEOTWAWKI, I'm going out with humor and a smile. I'm going to enjoy my last drink, my last dance, my last laugh. I suspect Michael Lewis will do the same. The rest of you can clutch your gold and guns, screaming at the Jews and Bilderbergers while you pass on into forever, never having enjoyed a happy day. That's your choice.
The world ain't fair, life is full of pain and suffering, if I was in charge things would be better, I'm the only one awake and aware......blah, blah, blah, blah, blah. Personally, I just accept the challenge and make do. Sure, I beef about it on occasion, but if I had the choice to be born or not, at the time I was born or another, I'd change nothing. Your own mileage may vary. That's not my fault.
Shit happens. Be nice.
http://www.youtube.com/watch?v=rBllejn5fVA
DR. DOOM BITCHEZ!
See you tonight! Chi-town...
http://www.youtube.com/watch?v=UyMPLiizIzg
The punk that junked me...
See you on the dance floor tonight around 8 PM. No one leaves with a clean nose.
http://www.youtube.com/watch?v=6mKRYlCiRfo
What will you be wearing to the dance?
Gold at 1:1 with Dow, assuming a modest 15,000 at end of year, and taking a GSR of 16:1..means 937.50/oz Ag. Lol.
I do favor gold and silver - but within reason.
When masturflation's lost its fun. You're fucking lonely. Bite my lip and close my eyes. Take me away to paradise. I'm so damn bored. I'm going blind ...
Green Day ftw
did someone say doom?
no "bloom" ...we got O'Bummy, Timmy and Benny leading to recovery, in fact recession is already over haven't you heard? ...it's all going bloomingly well to their Masterplan
It's all incrementalism folks; the gradual, though quite observable increasing DHS/FBI/CIA/NSA fascism using the convenient terrorist straw man (the latest examples of young manipulated muslims and the entrapment schemes are quite laughable). The slow disintegration of the USD, supposed to last for a decade, but now approaching faster (even Ben and Timmah cannot control everything). The slow destruction of the ability of government policy to provide any realistic energy policy (WTF are they waiting for, gas @ $10?)
Faber is right; the agenda of the elites is obvious.
I especially love how Americans label someone a "terrorist with weapons of mass destruction" when he leaves a rented SUV in Times Square with a couple gas cans, using a bundle of matches for a detonator or some dumb crap.
Muslims are morons and screw-ups. They all are. That's why they are still living in the middle ages. They're even dumber than the dumb-ass fundies, who at least know how to build ANFO bombs and drive tanker trucks.
You gots nothing to fear from Muslims. You certainly gots no reason to blow half a trillion a year on the Department of Homeland Security.
Except, y'know, that your government wants to rape you as much as Mubarak raped the Egyptians - $75 billion? and with USA's outright support? And the Swiss bankers actually had to WAIT until he was overthrown before freezing his bank accounts? They never asked where this president got the $75 billion they were hiding for him?
Trust me. At some point in the next 5-10 years, you won't fear getting gunned down by muslims in the streets of the USA - you'll be getting gunned down by your plutocratic government.
Here we go..Big Brother does shakedown on mom and 2 kids...yea they have threat/doom written all over them..
http://www.youtube.com/watch?v=V1B3AubsTBo
And this was AFTER the TRAIN arrived at the station. Unreal what America has become.
It's disturbing how dumbed-down Americans are about what's going on.
Not really...most are just trying to keep their nose above the water...work, kids, bills, bullshit on tv. To keep them disoriented is just another part of the plan...it IS a plan. So don't hold hard feelings for them, they may be the ones in the front of the line when the day of reckoning comes with their eyes ablaze and teeth showing.
Says the Smurf bogarting a bong.
and holding an 'END THE FED' book...
<deadpan> Wanna toke?</deadpan>
Holy shite! Didja see that?! The emperor isn't wearing any clothing!
What I see hear is a real solution to our unemployment problem. We create a TSA checkpoint practically everywhere until everyone unemployed is now employed by the renamed Gestapo, namely the TSA. Folks, its win-win.
And, think how this will not only help the industries that manufacture uniforms, metal detectors, and tables to be used by TSA agents as they rifle through your carry ons, but floor stickers to show you exactly where to place your feet, along with laytex gloves. Hollywood can also join in on this ground floor money making opportunity by making mind numbing propaganda films helping the sheeple understand exactly why we need a police state and lessons on how to behave while the TSA pedophile is putting his hands on your sons junk.
Listen up America, if we don't transform into a police state, the terrorists will win.
The terrorists have won. They have created an exponential response cost to what amounts to a few million $ investment in terror.
When that slimy Bin Laden spends a thousand bucks recruiting and the U.S. response is another billion in the toilet, then Al Quaeda wins.
Yeah, especially when Bin Laden is still considered an asset.
We already ruled out air travel after our baby was subjected to a *diaper search* in a foreign airport last year... at CBP's instruction. I guess now we rule out the train, and travel only by car until you have to be strip-searched and undergo a background check to drive one of those, too.
Airport-style TSA inspection stations at every freeway on-ramp. You can't be too careful.
I always get the same sneaking suspicion listening to Marc Faber as I do listening to Jim Rogers or George Soros. Like they are a commodities broker on the sell-side, and whenever I start getting in will be the exact same day they start getting out. If anyone of these 3 guys want to show me their current portfolio as they give me advice, that is the same day I will start to give a damn about anything they say.
Jim Rodgers has been saying the same thing over a decade
It may not have occurred to you that they don't really care what you buy or sell or just babble about.
Faber, Rogers and Soros are used to dealing with high wealth individuals, fund managers, etc...
They don't give a damn what we think or buy.
I believe that their comments are aimed at those with $5 Million per year or more income.
It's foolish to take offense at their remarks because they are not talking to us.
Not to say that their comments cannot be useful in some ways.
So do you think that these individuals (and others) lurk on ZH? Perhaps they are curious as to what some of the "little people" might think?
Perhaps, but my guess is no. They are "plugged" into the system. What knowledge could they get from here that they don't already have, either directly, or telegraphed to them via their network of good ole boys?
"Another record year of Wall Street bonuses," begins with Jamie Dimon at JPMorgan taking home a $17 Million Bonus.
Record Optimist Sentiment;
44 Million on food stamps;
1/6th unemployment.
"No one could have seen this coming," the Bankers told Congress.
17 million. When is "enough money", enough? Seriously...
When you need your own private yacht this big:
http://www.google.com/images?hl=en&biw=1277&bih=626&gbv=2&tbs=isch%3A1&sa=1&q=superyacht+eclipse&aq=3s&aqi=g1g-s1g1g-s2g5&aql=&oq=super+yacht
How to hyperlink words:
1) type word
2) highlight word
3) ctrl + k
4) enter address
Enjoy
17 million ain't squat dude. Bread was 201 billion in Germany in 1923. The banksters are just cashing in early, as ususal.
Oh, I am sure that the majority of them (aside from the utterly retarded asswipes like Erin Burnett and Steve LIESman) understand the distinction between nominal and real --- it is just not in their corporate/government handlers' best interests to publicly acknowledge that distinction.
Burnett and Liesman work for NBC as such they are shills for the administration.
They are merely members of the "Tribe"
(The Club that few have access to).
Erin Burnett, Becky Quick, TRISH and all the rest are most likely "ASEXUAL" much to the contrary beliefs of the predominantly mid-older male demographic that stares at their eyes day-in, dayday-out.
Many here would probably be disappointed (under-whelmed). Could be wrong, though. I just don't believe I am...
Are you trying to say that I won't be getting any blowjobs from the Fantastic Trio - Erin, Becky, and Trish?
Just like economics, it's all relative.
It's not wise to speak ill or degrade on the Internet. If they are able to track you down, you might get one of those infamous "Visits", discussed regularly on the interwebz.
Hell even Andrew Jackson (our 6th President) got pissed off enough to challenge his wife's accuser in a duel... As a result he coughed up blood most his life!
Too late, I guess you didn't see some of the comments I made about Uncle Muammars Ukrainian love nurse on Saturday.
http://www.zerohedge.com/article/gaddafis-ukrainian-love-interest-nurse-desserts-deranged-dictator
If someone does decide to visit, we'll break out some of those magic mushrooms, and call the CNBC Fantastic Trio over for a night of orgasmic psychedelic soixante-neuf.
Did Pres. Jackson have a keylogger on his wife's ipad? Just how did he use the internet to track down his wife's accuser?
my good sir, EVIL, i think you might be on to something. i have learned a few things in the last 24 hours, since i told you when i lost my cherry† to this trio, giving a man a blowjob is simply beneath them. let them be, they aren't the problem, but the distraction. i have seen many moons since my last communication with pure ness
Will do, Princess of my dreams.
I just love the way you whisper sweet nothings in my ear, even though you know I'm nothing but a twisted perverted wretched husk of man, somewhere akin to a cross between Quasimodo and Larry Flint.
Whenever I see these two buffoons on tv, I always refer to them as the 'gleesome twosome' because they always seem in such awe and admiration of the banksters and politicos they interview which seems more like a fireside chat!
They are absolutely clueless, so obviously they fit the CNBC theme to a T.
A breath of fresh air.
Marc Faber is "pi squared" of pessimism with a silver lining of golden shingles all dipped into a corporate heap, deep shit of blue chip shares, that will stand the proof of time like an antibiotic a rage of the inflation plague. The recipe for the future in uncertain times. You better believe it until you see the next witch doctor!
Oh no -- the economic Blue Screen of Death...
Now Faber is really getting scary.
Thank god I run my reality on FreeBSD.
Judge Judy instructs the team to compile vanilla with the GR patch. grsecurity.net on kernel.org
Stability in harsh terrain. Never fails.
But for the Win crowd. Why not run your OS off of your DVD drive?
http://www.ubcd4win.com
Even lets you change your MAC on the fly.
A gsr of 42.25 be intolerable.
What would we do without Faber? He is so cool. Whenever I feel depressed and out of hope, I listen to or read Faber and I immediately feel better. No matter how bad it gets for me personally, Faber clearly thinks it's much, much worse, so I'm an optimist by comparison and can feel good about it.
Nice post on a Sunday night (UK local time), to ease us into the working week.
"So help me God, I love it so."
Agreed! A good healthy dose of doom porn a couple of hours before oil and gold open is just what the good Doctor ordered. Christ I need o cocktail!
Do you think that the subject matter discussed on ZH has any effect on the markets?
Not on the macro scale.
Well.......duh
If you rely on an arm of flesh... you are certainly doomed then...
I'M A HUGE FABER FAN BUT WHAT THE FUCK IS THAT THING ON HIS FACE!??!!??! It's freaking me out!
That's the play button for the Youtube video. You click on it and you can hear Faber talk.
He has a headset on his left ear and the flesh colored microphone is what you see...
Faber is Lame. He's been preaching the same crap for years. He's just another talking head who has a line of bullshit and can't manage money on his own.
He bought rock bottom, 666777... Flip them and sold them to you.
Dodd Financial Bill Creates ACORN for Risky Credit Applicants - Thursday, May 6, 2010 4:52 PM
[PDF DOCUMENT] Nearly every page of Senator Dodd’s 1400 page financial regulation bill, th...
McConnell-Shelby Attempt to Fix Consumer Protection Bureau Fails - Thursday, May 6, 2010 4:27 PM
Moments go, Senators Shelby (R-Al.) and McConnel (R-KY) amendment to Senator Dodd’s “Wal...
Americans for Tax Reform Supports McConnell-Shelby Consumer Protection Amendment - Thursday, May 6, 2010 11:30 AM
[PDF DOCUMENT] Americans for Tax Reform supports Senators McConnell (R-Ky.) and Shelby’s (...
Americans for Tax Reform Supports McCain-Shelby-Gregg Amendment to S. 3217 - Thursday, May 6, 2010 11:21 AM
Read more: http://www.atr.org/?search_tag=BANKING##ixzz1FCAG203D
May 5,2010
[PDF DOCUMENT]
Since the financial crisis of 2007, Americans have become more interested and reliant on complex financial products than perhaps at any other time in history. The media made quick work lumping together and demonizing all derivatives – something they little understand.
Commodity derivatives are investment tools that allow investors to profit from certain items without possessing them. This type of investing dates back to 1848 when the Chicago Board of Trade was established. Initially, the idea behind commodity derivatives was to provide a means of risk protection for farmers. They could promise to sell crops in the future for a pre-arranged price.
Simply put, a derivative is a contract which allows the holder to purchase a good in the future at a price determined by the market today. The contract holder hopes the price of the good will rise above the agreed contractual purchase amount.
Playing to the fears of the American public, Sen. Chris Dodd (D-CT) and others are jumping at the chance to harness sentiment against derivatives. Dodd’s crusade against derivatives must be stopped as many derivatives actually benefit everyday American life. Derivatives shield the market against enormous price fluctuations in food, energy, steel and countless other items we depend on to live normal, everyday lives.
Now, Sen. Dodd’s “Wall Street Bailout” bill, S. 3217 the Restoring American Financial Stability Act of 2010, seeks to unnecessarily regulate these commodity derivatives which make up 0.6% of the global derivatives market. In fact, derivatives, like those used in end user transactions, help fuel the American economy, incentivize responsible growth and protect consumers.
“According to Exelon’s analysis, it is very possible a requirement that virtually all trading activity occurs on organized exchanges…could increase the power prices…from 5 to 15 percent.” (Exelon testimony on H.R. 3795, 12/2/09)
FERC Chairman John Wellinghoff mentioned during oral testimony before the House Energy and Commerce committee that not exempting end users from clearing requirements could negatively impact companies’ abilities to invest in renewable energy technology. (FERC testimony on H.R. 3795, 12/2/09)
“These are very important markets for us to hedge our risk. We don't have the kind of capital at hand to be able to handle a great deal of risk. Anything that would increase those costs I think are going to push our people out of those markets and it increases risk to our members considerably.” (NREC testimony on H.R. 3795, 12/2/09)
“Whenever you look at the size of these markets you can’t hardly see us with a magnifying glass.” (NREC testimony on H.R. 3795, 12/2/09)
“I would like to mention the critical importance of continuing to allow LSEs and energy end users to use non-cleared, individually negotiated OTC transactions to hedge the price of energy fuels in order to continue to offer the best electric rate possible to our customers.” (American Public Power Association testimony on H.R. 3795, 12/2/09)
The proposed regulating of derivatives in the Dodd bill will harm, not help our economy. Yet another problem plaguing this bill – allowing this bill to pass will cripple our economy and will make permanent the same failed practices of the past
Read more: http://www.atr.org/understanding-commodity-derivatives-unnecessary-regulations-misunderstood-a4898#ixzz1FCAcZ5Du
On May 6, 2010. You witnessed the sell off to over ride a voting agreement. No one will talk about this, I repeat, no one! This is what really happened.
duh...they don't read the bills. They let some lobbyist tell them if they should vote for it or not while having dinner and drinks at the Jockey Club.
Why do you think Dodd bought that island off Ireland and has 30 guards protecting it? AT your expense, I might add.
don't cha' know:
http://www.youtube.com/watch?v=gW7mOaPnYYA
and
http://www.youtube.com/watch?v=scVjxxw6w0U
and
http://www.youtube.com/watch?v=umrp1tIBY8Q
and etc.
- Ned
Let the good times roll! Faber may be a bit over the top, but anyone who thinks this is all going to just smooth out is not very bright. Investment performance over the past year = 600 oz ag, 75 of au, 3360 rds 7.62, 2500 9mm, 5000 .22, ( and the hardware to put these to use.) 6 months dry goods, case and a half of rum, freezer, seeds, and whatever else I can think of. May be redeeming it later this year or maybe next year, but I am sure it will be a worthwhile investment. 98% of politicians should be barbecued. Go Ron Paul.
+++++++++++++++++
I'll bring the gasoline and barbecue.
dont forget the wood chips please!
At that point, wouldn't it be cheaper to burn the paper fiat currency?
Now here is a true American...helping out the economy one purchase at a time.
The bullets were probably made in mother russia and the rum was hopefully made in Haiti -- Gotta support the haitian economy nowdays.
BOOOOOOOO!!!! Steel case anything! BOOOOOOOOOO!!! even Hornady steel... booooooo!
M61 for the 7.62!!!! Yaaaaaaaay!!!!
I am a sciencetician; please post your home address so we can come interview you for our sciency research.
you may need an extra rower in that raft... in the name of science I will subject myself to the added work load.. as long as we are going with the current.. if not my I suggest we use my boat for the research trip!
on Sun, 02/27/2011 - 16:19
#1002147
***** "case and a half of rum" *****
That is just plain ole' Un-American... case and a half... where has the Love gone for your nieghbors?
What part of "Love Thy Nieghbor" didnt you comprehend?
Get your but down to the store and fix that...
___________________________________________________________________________
On a serious note... depending on where you live (not my business) you may want to / really need to look at some Physical Solar / Physical Wind Turbine / Micro-Hydro Power for around the house.. as well a water source you control..
If you are lucky enough to have running water on property, you can kill to birds with one stone... runiing water runs all the time thusly you could have power all the time.
http://www.youtube.com/watch?v=w8Iq0b2jwyw
http://www.youtube.com/watch?v=Ccg9STcUjIY
I have not bought the following.. but it looks great... so becareful Brother.. but it looks great! http://www.hurricanewindpower.com/servlet/the-175/low-wind-PMA-%2C/Detail
I am waiting for the tri-power unit.. which could be used on a gas powered / water powered / wind power... anything that makes it spin..
Good Luck and God Bless You and Yours, JW
I believe I have some "strike anywhere" matches...
Marc has the balls to call it like he sees it and puts his own money where his mouth is. THE standard. Marc would make a hella mentor.
he eats his own cooking... as well he trades in front of his public interview(s)... nothing wrong with that, if your going to win any way.. might as well pump it, for the benefit of others really.
Perhaps the real doom indicator is found, not in Marc-Faber-Land, but the Homeland. Americans hate each other. One Market under the Elite's FED/GOV/MILITARY, divided by general greed.
It's been that way since I was born in the early 70s...people are just having a harder time keeping a lid on it now.
You look GOOD for your age. I'm inpressed!
It's my strict diet of anti-occidents and daily exercise punking the drive-by junkers.
Couldn't have said it better. Was at my dentist, then he started bad-mouthing a certain political person that I happen to admire. After that, I had to change dentists.
For some reason, every time I hear the word "Homeland" it reminds of "Fatherland." Is this a coincidence or the government ...
Shhh, Big Brother is listening. Never mind.
+1, been there, and often. I like Ron Paul and wear RP shirts a lot. My attire generates a lot of hate and vitriol. I can tell you the exact talking points on teevee or talk radio just by hearing what people say to me. Most people I encounter have picked a team and no amount of reason or logic is going to make them give it up.
Feel the same about the Fatherland thing too. Fully expected to see a US version of Hitler Youth 2 weeks after Homeland inSecurity was put in place.
a neat firefox addon that allows you to see the title of a youtube vid by hovering over the link for half a sec:
http://code.google.com/p/youtubetooltip/
Faber: I think what will happen is that we are in the midst of a kind of a crack-up boom that is not sustainable, that eventually the economy will deteriorate,
Just what economy is he talking about that is in a "crack up boom." China? Certainly not the US, with a huge output gap and over 20% unemployed, underemployed or not participating. Let's be concerned about employment when the output gap closes, unemployement corrects, and there is some wage pressure. Otherwise, not so much.
Yes, pay no attention to that man printing money behind the curtain.
The stock-/commodity markets.
Why didn't he say bubble in equities if that's what he meant?
Ok. So here's how you go about the great re-set. One day, without warning to anyone, you take all values in currency and move the decimal place one to the left. Then, to prevent currency collapse, you invoke a very strict fix to the gold price.
Then you devalue your currency against gold. Any trading that commoditizes prices should be outlawed.
One thing that might not be considered is taxing dividends less, so that the real economy can compete with the bond markets, and not give one great advantage over the other.
Sounds like a seamless recovery to me!
I'm nibbling on the meat from the forearm of a squirrel right now. Doom isn't as bad as everyone makes it out to be
save me a leg will ya?
Faber is an idiot. If the end result is war and death why the fuck would you buy a house? Why would you really even care about financial markets if you are doomed. You could either prepare for armageddon or just enjoy life while you can. If he truly believes what he is predicting he should be 'all in' with PMs or just spend it while you can and enjoy whats left of life. I do not understand why he would even discuss a 10-15% possible draw down in homes, that implies that things aren't doomed.
And I bet that you believe that the USA has an honest political system, with real and meaningful differences between the two pro-status-quo parties?
The real world tends to operate outside of the confines of false dichotomies.
Thanks for your black-and-white analysis, however.
Your post has inspired me to join the Marines. I expect to get some serious trigger time in the bush within 3 months.
Define 'doom'.
The Weimar was doomed. But people lived on.
Sysiphus was 'doomed' to roll the stone up the hill.
Some people and governments are 'doomed' to make the same mistakes over and over.
I've never heard Faber say 'the end of the world'.
I'm pointing out the inconsistency of the author discussing small movements in home prices when he's claiming the entire system is in jeopardy. Seems like apples and oranges in the same article.
Who do you guys think from radio host to financial analyst is the most worth while to listen to? Someone with the great advice that doesnt have an agenda, is not a con artist, does not tell half truths, doesn't manipulate.
That's gotta be Bill Maher.....
HOW TO MAKE 1,200% IN 1-3 MONTHS
buy 1 june mini-nat-gas 4.20------------------$2,000.00
buy 1 june mini-nat-gas 4.60------------------$3,000.00
buy 1 june mini-nat-gas 4.80------------------$4,000.00
buy 1 june mini-nat-gas 5.00------------------$5,500.00
sell 4 june mini-nat-gas 7.00----------------$25,500.00
1175%ROE
last time crude/natgas ratio was 24:1 it fell to 14:1 in 4 weeks.
nat gas trends higher March 1-June 1 seasonaly.
'diss eees dee krack-upp booom'
damon vickers is pretty rock strong too.
...still waiting for a modern day greenback spitting andrew jackson... or are we gonna keep taking it up the a$$ a little more?
Thanks, more proof that this rally will continue to surprise everyone, including doomsayers like Faber.
I see your point, but there's a problem with your "market should always climb a wall of fear" analysis. You're using lunatic-fringe posts from ZeroHedge as your contrary indicator.
Unfortunately, it's been proven by (sane, i.e. non-Chicago school) economists that when gauging the amount of fear in the market, you automatically have to discount all bullshit tinfoil-hatter posts. Especially when they reference "Weimar", "fiat", or "Zimbabwe".
You'll never see complacency on the lunatic fringe, so they have to be completely discounted.
And btw, it gets distorted by the loonie presentation, but Faber's more important comment is that the market will indeed advance in nominal terms; just that it'll be losing ground compared to inflation, is all.
***** "just that it'll be losing ground compared to inflation" *****
and what pray tell will be happening in this Global Backwards Slide? more printing? more POMO?
I guess what I am saying is at what point do you think that "The Great Stall" will occur?
I think that Oil Price Suppression will alone kill off all available means of maneuvering ability in a global sense... how much inflation will the World take before the People Rise up in Total?
Doom for the system as it is... is a mathematical certainty... it really more is a question of which of the multiple of demons that surround us, strike first.
Or... you can sell me on how everything is ok... I am open for good news, honestly... I am easy becuase I want to be sold on how this will all average out minus any drama / duress.
Thanks in advance for any time spent making me feel better.
And ZeroHedge's own pet masochist, and stalwart defender of everything corrupt and status-quo, chimes in!
Haven't you collected enough post junkings for ten lifetimes already, Leo?
Must really piss you off knowing you can't contribute anything on ZH except for childish insults. Too bad ZH does not have an ignore function like Yahoo...
Well, let's just examine the record:
Leo's posts junked into oblivion: Too many to count
Akak's posts treated similarly: Zero
I have participated meaningfully in hundreds of threads here in the last 13 months, unlike Leo, noted for his drive-by, flippant, arrogant, sarcastic one-liners pumping the corrupt and inflated stock market, and explicitly supporting the oligarchic power elite behind that manipulation.
The "childish insults", Leo, have been reserved strictly for you, as you have fully deserved by your shameful record here.
Yes, too bad indeed about that ignore function ....
Sorry, do you honestly think we have a healthy market?
If so, are you posting from a mental institution?
Shhhh! How dare you bother the great Leo Quislingasskiss while he is busy trying to minimize his losses while trading his blowtorched Chinese solar stocks!