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Paul Farrell's 10 Reasons Not To Buy Stocks Until After The Next Market Crash
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Paul Farrell lights it up in his latest market commentary, which puts even some of the more hard-core realists out there to shame: "Wall Street is a loser. Stocks are Wall Street’s ultimate sucker bet.
And it’ll sucker you again. You’ll lose, worse than in the last decade.
Wake up before Wall Street banks trigger the next meltdown, igniting
mass bankruptcy." Um, wow. And seeing how we have been saying that only absolutely immaculate top tickers should be in this market, we agree wholeheartedly with Farrel.
And here are his 10 reasons to stay away until after the next crash, via Market Watch.
1. American stocks are a high-risk sucker bet
That’s the view of Peter Morici, the former chief economist at the International Trade Commission: that U.S. stocks are a sucker bet. Is Main Street waking up to Wall Street’s con? Maybe. “With corporate profits breaking records, Wall Street anxiously anticipates the return of the individual investors to the stock market. It may be a long wait, because the little guy may have concluded investing in stocks is a sucker bet.”
America’s divided into two stock markets: one for Wall Street’s rich insiders, another for Main Street’s suckers: “Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profits up, but over the last two business cycles, that simply has not happened.”
From 1998 to 2010, profits rose 203%. But the S&P 500 was up just 7%. And still, naive investors buy into Wall Street’s sucker bet.
Who’s pocketing the huge profits? Rich insiders. “Because most of the increased value created by higher profits,” says Morici, “has been captured by hedge funds, electronic traders, private equity funds, and aggressive M&A shops, free standing and at major investment banks, which have multiplied over the last two decades.”
Warning: With the resurrection of the GOP and Reaganomics, Wall Street will skim more from Main Street, get even richer. And yes, you’ll lose more.
2. New ‘big short’ dead ahead: Derivatives con game will crash again
In a Bloomberg story, “Big Short” author Michael Lewis asks: “Why are the same Wall Street banks that lobbied so hard to dilute the passages in the Dodd-Frank financial overhaul bill banning proprietary trading now jettisoning their proprietary-trading groups, without so much as a whimper?”
The answer’s simple: Wall Street’s sneaky and will do anything to keep the derivatives casino running hot. Insiders “have no intention of ceasing their prop trading,” according to Lewis. “They are merely disguising the activity, by giving it some other name.”
3. Hedge funds shorting China: Warning — U.S. faces collateral damage
Get it? China may well crash first. Fortune’s Bill Powell interviewed hedge-fund kingpin Jim Chanos of Kynikos Associates, who’s “betting that China’s economy is about to implode in a spectacular real estate bust.” China is “an economy on steroids.” In a Charlie Rose interview, Chanos said “China’s on an economic treadmill to hell.” If so, then all of Wall Street’s highly promoted emerging markets are also sucker bets.
Another hedge-fund player warned: Chanos “is shorting the entire country,” including a company “Goldman Sachs recommended as a buy … the listing for the Hong Kong Stock Exchange … China’s Merchants Bank, one of Beijing’s largest.”
Back in the 1980s, Japan “grew largely on the back of capital investment” and then turned into “a capital-destruction machine, and that’s what China is now. You have an economy that’s 60% fixed-asset investment, and not even in the developing world is that sustainable.”
Chanos won’t pinpoint the timing or the trigger: “He just believes it’s coming,” and he is betting on it. Reminds us of Henry Paulson shorting Goldman Sachs’ crooked deals before the 2008 crash.
4. New insider-trading indictments killing Main Street confidence
Investor distrust of Wall Street’s casino will skyrocket in 2011. Before the elections in November, an AP-CNBC poll found 61% of investors had already lost confidence in the market, thanks to extreme volatility; 55% believe the market’s rigged to favor insiders.
It’ll get much worse as the FBI/DOJ investigations of insider trading add indictments and perp walks. As more facts surface, this could get bigger than Enron and the SEC mutual-fund fraud suits combined: more proof of Wall Street’s rigged game.
5. Banksters’ perfect gambling record proves stocks a rigged game
Last year we reported that Goldman Sachs made more than $100 million in profit a day for 23 days in one month. This year the con game has gotten bolder.
Morici says “J.P. Morgan and Bank of America went through the entire third quarter without a negative trading day, no losing days on proprietary trades. Unless you believe in perfection, something stinks about the information they are using. If someone is winning all the time, then someone else is losing. That’s the ordinary investor. Stocks have become a rigged game.”
Yes, America’s 95 million average investors are suckers in a rigged game.
6. Wall Street is socially worthless, existing only to make insiders rich
In the New Yorker, John Cassidy writes: “Much of what investment bankers do is socially worthless.” Wall Street exists solely “to make itself very, very rich.”
Yes “worthless,” but “for a long time, economists and policy makers have accepted the financial industry’s appraisal of its own worth, ignoring the market failures and other pathologies that plague it.”
Worse, continues Cassidy, “even after all that has happened, there is a tendency in Congress and the White House to defer to Wall Street.” Why? Wall Street’s huge lobbying war chest. Soon all this will come to a disastrous climax, Wall Street will implode on blind greed.
7. The Fed is America’s worst nightmare, a $3.3 trillion moral hazard
Moral hazard simply means no consequences for Wall Street’s complicity in triggering the 2008 catastrophe. As a result, Wall Street insiders came away believing they can take bigger and riskier bets in the future because they will get away with it next time, too.
Why? Because America’s suckers will be dumb enough to bail them out the next time, too, with no consequences when they fail miserably again.
Last week the Fed made the moral-hazard risks more obvious by releasing 21,000 documents showing how an arrogant Ben Bernanke approved $3.3 trillion in cheap-money taxpayer bailouts to incompetent Wall Street banks, blue chips and even banks in Switzerland, France, etc. Bernanke’s making fiscal policy, and he’s a tragic disaster. When President Obama reappointed him last year, we echoed author Nassim Nicholas Taleb, calling it Obama’s worst domestic-policy blunder.
But it can get worse: Caving in to the GOP on Bush tax cuts to the rich will funnel billions more of our tax dollars into the rigged game. Final proof Obama is Wall Street’s co-conspirator in the class war against 300 million average Americans.
8. Wake up to a new normal: no growth, deflation
In his latest newsletter, economist Gary Shilling, a longtime Forbes columnist, warns: “Real economic growth rates of 2% or less are likely through 2011.” But we need 3.3% just to keep up with population growth.
So “high unemployment remains a political problem … with weak economic growth, looming deflation, and the dollar and Treasurys remaining the safe havens in a sea of global trouble.”
Warning: America’s new era, featuring no growth, deflation and a jobless recovery, will continue for years, resembling Japan over the past two decades. Worse, brutal deficit cuts will trigger riots, as in England, France.
9. Privatize Social Security: New GOP Congress loves dumb ideas
Here’s political Reaganomics at its numbest. Alan Sloan writes in Fortune: “Privatizing Social Security: Still a Dumb Idea.” The idea was “slaughtered when George W. Bush proposed it.” Yet many GOP millionaires in the new Congress campaigned on privatization.
“You’d think,” Sloan posits, “that the stock market’s stomach-churning gyrations — two 50%-plus drops in just over a decade — would have shown conclusively the folly of retirees having to bet their eating money on the market. But you’d be wrong.” They’re about to resurrect it. Why? Simple. Because the GOP is the party of the rich.
Yes, it’s that simple: Wall Street’s casino would love to get their hands on another $20 trillion of your retirement money, to gamble in their derivatives casino.
“Why is privatizing Social Security such a turkey?” asks Sloan. “Because retirees shouldn’t have to depend on the market’s vagaries for survival money. More than half of married couples over 65 and 72% of singles get more than half their income from Social Security.” And “for 20% of 65-and-up couples and 41% of singles, Social Security is 90% or more of their income.”
Imagine if our Social Security had been privatized in the 2008 meltdown: It would have done more damage than nuclear warheads, totally wiping out the American economy.
10. Warning: Wall Street will lose another 20% of your money by 2020
We have been making these same arguments for a long time: Wall Street has lost trillions in the stock market since 2000, a year in which the Dow Jones Industrial Average peaked at 11,722. It’s barely at 11,000 today. Adjusted for inflation, Wall Street has lost 20% of your money in the past decade.
Wall Street’s a loser. And, worse, Wall Street will do it again by 2020. That’s right: It will lose another 20% of your retirement money.
Warning: Stocks are a sucker bet at Wall Street’s rigged casino. Buy stocks and lose. In fact, you’ll probably lose more that 20% when the third meltdown of the 21st century explodes. Bigger losses than in 2000 and 2008 combined. When Wall Street’s too-greedy-to-fail banks finally collapse. When they cannot push the second Great Depression downhill one more time. When taxpayers revolt, refusing to bail out our corrupt banking system. When the American people force Congress to return to tough 1930s regulation.
Folks, Wall Street is suicidal. It’s kamikaze. A deadly game of Russian roulette with America’s future. Wall Street’s self-destructive greed is driving America to the edge of total failure. Yet Wall Street’s behavior is so predictable — like a blind addict trapped in denial, unable to see the deadly consequences of his behavior.
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Yeah, it's the sports mentality... more dumbass distraction dished out as entertainment. Party hacks rooting for their team, not realizing that they're responsible for the very crap that they're whining about!
+1, well put!
Oh no, not the Soros conspiracy!
Don't go down the rabbit hole unless you are Alice! stay sane...
Market is a LOSS over the last 2 years in real purchasing power Harry dummy.
Paul seems to lean Marxist. Privatizing SS would be the right thing to do. Imagine if they had done that and kept it all cash. It certainly would be better than bullshit IOUs. Paul leaves that out. I like most of his points, but speaking about GOP, when we have hopefully elected some real conservatives neglects what the election was all about. Conservatism and non crony capitalism is the way to go.
There is no ONE solution to the horse-dung we are in. We better listen to everybody's opinion on this. Don't get me wrong...we are fucked either way and our arse is going to get sore whether we are conservative or liberal because the shit we are in is going to hurt us all. The banksters are going to grab popcorn and roll tobaco in hundred dollar bills and enjoy the party.
PS: I didn't junk you.
one thing nobody thinks of is all those old people with dementia and alzheimers trying to...invest their own privatised social security funds??? typically there is a gap between the time the person develops dementia and the time another family member steps in to manage the finances. denial delays everything. it would be a disaster.
Paul 'i'm not joking like Will' Farrell
Hell yeah it's been a sucker. I don't know how anyone at anytime could of been stupid enough to buy crap.com for 200 bucks a share or likewise some dotcom that never charged for its services. Are people more awake than that? Sure. But not much more than that.
Reaganomics in Reality ----- It's never been used or believed by more. It used to be the domain of only retarded republicans. Now it's the domain of all retarded politicians of both faux sides. Bailouts are an extreme version of Reaganomics. It used to be mostly tax cuts and other monetary 'tools' filled the supply side. Now we have a bigger master and it's name is QEXXXXXXX and every bailout.
Republicans who lost complete control of gov't, didn't see gov't take any of that back under the democrats (their fault ofc), and so in reality while gov't change, it's republican policies never did. What did the dipshits do after realizing to a small degree that they got fucked by republican faux ideas? They put them back in power. Amazing. Now these dipshit repubs in office (basically all of them) think they have a mandate. If you thought NERO was out of touch, just wait until you see how badly the repubs can't govern.
Derivatives oh yeah. Fake bullshit that is a frankenstein experiment now running the world.
There's not enough fiat money and digits/0's in a 64-bit memory being fully maxed out that will bail out the next crash. Plus once the big one comes, there won't be a functioning society. Thus, the banksters already jumped the shark, as well as everyone who BELIEVES it's POSSIBLE even IF my fellow Americans were FULLY cognizant and willing to give the banksters what they want...at that point....the bailouts won't work. So just deeming that a bailout of the biggest order can be made, is a bit foolhardy. When the big crash comes, no one is getting a bailout. NO ONE will not face the pain. Even if you the most 'wealth' in the world you will lose much of what made you glad to be alive in 2010 and not 1410.
Bingo. Of course that's why they want to privatize social security...the derivatives. That's all that is about, that and the commissions. Forget about grandma buy...buy....buy Lamer's duds. Because with 20 trillion going in, that market distortion, is called sustainable and not the bs bonanza that it is, by the Kud'I get'low-er ratings?
20 percent by 2020? More like 90 percent, by ANYTIME.
Hey ZH. See what I mean. Another Soros drone. Get off this blog you big dope!
It all really depends on what a person 'believes' about the markets and what is a good value. The dot com era was convincing enough to me that the markets are not to be trusted and myself and a good friend were talking about the market crash of 2008 in 2002. We just didn't know when it would occur but we talked about it incessantly. We just saw homes being built and sold for $400k in an area where $15/hr jobs were the best jobs around ... no phd required to see a collapse coming.
I see no jobs being created and whatever is created are very likely low wage crap jobs while home prices remain far above what is reasonable for the average wages paid these days. Job security is a rarity and the prospect of finding another job that pays enough to support an overpriced home if someone is laid off is slim to nil. Having to move for work is extremely likely in such a case as it happened to me.
The financial world punditry has talked about a 'decoupling' of the emerging economies from the US economy but I don't see that as remotely possible. The emerging economies have already blown it for themselves as they paid their workers too low to become autonomous and 'decouple' from American consumerism.
I 'feel' the boot is ready to drop just like before 2008 occured but haven't any idea when that will occur. P/E ratios are still very high relative to what should be considered good value in a historical sense. I simply don't trust wall street nor the politicians and no amount of cooing from the financial punditry restores my trust. It won't work with me. I see no financial justice. I just buy and hold PMs and wait for that boot to drop again and pity those whom it hits, I cannot trust a system that is so rife with fraud and deception with a justice system that is awol. It is as simple as that ... for me.
Farrell does a pretty good job of explaining why we call them 'Stocksuckers'.
Not to be confused w your brother Richard
my bro, d i c k sucker?
No fool! Clint's bro.
No fool! Clint's bro.
So cornfused...
buy the fuking dip, or do another MW login.
The SPX has gained 30 points in 5 years 12/07/2005--12/07/2010 Big Whoop !
http://finance.yahoo.com/q/hp?s=%5EDJI&a=11&b=6&c=2005&d=11&e=7&f=2005&g=d
I have been of the opinion that you could take a truck load of .50 caliber BMG's down to wall street and pull the triggers for a full hour, mow down everybody in sight, and not hit an ethical financial or banking professional.
Nor waste all the truly deserving demons. Need 4 trucks of ammo.
You be pissing in a strong wind with that.
10 millions of people riled up that thier momma, daddy, brother, sister, son, daughter, aunt, uncle and so on etc are getting hurt over there on wall street.
I propose a simple solution.
No power. Therefore the wall street has to put up white blackboards and use wipe off markers and rotary telephones with morse code telegraph to slow things down and still conduct business.
After one day, bears are whipped up into a total frenzy.
In fact, the screeching of "market has topped!" and "key reversal" by the Fast Money boys was absolutely deafening.
That is why I only assigned a 50% probability that the market is going to top out right now.
With the bears going completely wild, would not surprise me to see the market go up again.
In fact, I see that gold and the euro have already bottomed this evening and are now grinding back up.
Post the netflix chart again. Wondering what it did today
I love Pier One from the 09 lows.
http://chart.bigcharts.com/custom/ccbn-com/stockchart/chart.asp?symb=PIR...
Paul just needs to pick 'em better:
Curious about RDWR and JKS this evening. How'd they do today?
A gift to all of you (Buy on any weakness):
I did end of last week.
Is that the same DRYS that traded at $131 per share in 2007? The same one? Gee it's good to be a long term investor
Do not trouble Leo Kolonasskiss or RobotTraitor with any timeframe longer than 24 hours! Why drag up ancient history from two or three years ago? Just climb into bed with the oligarchs who keep raping you, and resign yourself to a future of taking it deep and taking it often, and picking up their crumbs in exchange (if you are lucky). That is the message of Leo and the Robot.
I AM an oligarch. I just prefer to buy low and sell high in no certain order and resent posters of previously ramped stocks implying they do the same
being an oligarch is a FANTASTIC job! man, i should have majored in that.
damn acky brakey, i never knew, how to phonetically pronounce Leo name,
Colon Ass Kiss
akak,
Either you make money or blow meaningless platitudes about "climbing in bed with the oligarchs". Wake up bud, THEY OWN YOU -- ALL OF YOU! I'm not scared to share some ideas here because I'm always looking forwards, not backwards. There will be plenty of opportunities to make money IF you pick them right and are able to stomach gut wrenching volatility (like my solars).
Particularly in hindsight, eh?
Thanks Leo.
Your one of a few who try and give out a few tips. Show the 5 year chart on DRYS .....
Ouch ... lol
Buy Buy Buy !!!
Buy, buy, buy .... Low.
I hope you understand the dilution an income spread that DRYS suffered when they went from <50m shares to >290m shares.
SHHHHH!!!!!!!!
Don't interrupt Leo, RoboTrader or Hairy Wang with facts when they pitch their book...errr...opinions!
That dry tells me so many ships must be sitting about either filled with commodities too low in price to offload or empty and rusting because no one is shipping.
It will take a few dozen hunter killer subs to clear that backlog of shipping capacity in a proper shooting war.
Leo, you're cute when you're angry.
That's nice. Keep showing us things that ticked and topped in 2006-2007 that was being front runned by the oligarchy before they did crazy things like try to make a fucktard like Al Gore an influental opinion molder.
Socrates would beg to differ.
Bzzt! You're not making MONEY, you're capturing CURRENCY. BIG fucking difference. But, if one is a lover of (doomed) fiat CURRENCIES, then by all means, jump in!
I'm looking more forwarder, because, well, because I'm Seer! You're just a wanna be chump...
Hey, akak - if you've been around ZH for even a little while, you'd realize Leo is one (of maybe 11) of the good guys. Relax, take a another hit of whatever and come back WHEN YOU'RE FUCKING READY TO BE EDUCATED YOU STUPID FUCK. But like I was saying, all views are tolerated here - just some more than others. Enjoy the rest of your high.
TreeMagnet, I have been a regular visitor to ZeroHedge since early this year, and in all that time I have seen little if any evidence of Leo being "one of the good guys", but have seen a great deal of evidence suggesting otherwise. He has repeatedly stood up for Bernanke and the machinations of world central banks in tightening the noose around our collective necks, has repeatedly mocked those who rail against the crimes and corruption of the financial oligarchic elite, and has repeatedly advocated surrender and collaboration with the same. If that is your idea of "one of the good guys", then I want no part of your "good guys".
And the fact that Leo's pro-establishment, cowardly, Quisling-esque, "Surrender to the Dark Side of the Force" posts routinely receive double-digit numbers of junkings, often into oblivion, strongly suggests that I am far from alone here in my opinions regarding Leo.
Treemagnet: member for 11 weeks 3 days.
Akak: member for 42 weeks, 1 day.
So what - ? I'm 43 as well, that doesn't mean I know more than someone who is 23 or 63. C'mon, rula - you can do better than this can't you?
I never said I wanted to vote for the guy....relax Francis. You can learn something from anyone. Maybe I have the wrong Leo - is this the same Leo who guest posts? In those posts, that Leo has made some good points - probably why TD lets him step in from time to time.
LEO,
Should I roll my solar profits ;) into DRYS? Ha!
that is not a good read at all. i was going along then i got to the 1998 benchmark for stocks and profits, Well in 1998 stock prices were already pretty high, so talk about rigging the data, it lost me as serious analysis,
you know its a dem rant when wall street is invariably evil and there is little blame on government, when there is plenty to go round. i stare straight at the privatize SS argument and don't blink, first it aint the whole %age, and second so the freak what? Right now i am not expecting dime one from SS, and i only have a dozen years to go.
China is probably a bubble, but how far is the China market down already ytd, so i cant short China real estate, as investment advice, i do not trust this. bottom line may be okay but shoddy analysis.
Wall Street is responsible for the empty trusts owned by pension funds that hold overvalued mortgages that have been traded between banks on MERS (an internet site) without taking the trouble to follow established state law and record the promisory notes thereby destorying any chain of title which makes it very difficult to foreclose. How worthless and dangerous. However, wall street also makes it possible to run a $1.5 trillion annual deficit. We are doomed and screwed.
He's like Kurtz in Apocalypse Now.
++1
Well done.
Real estate brokers bring a lot to the table for SIX percent.
Mortgage brokera give a lot of service for THREE - FOUR percent
anyone trading on farrell's advice over the past 3 years lost their ass...
'nuff said...
Didn't he say but AXL ARM DAN at 20 cents/share in March 2009?
The author focuses too much attention on the Dem/GOP dynamic. That's just a diversion, which I would expect an intelligent person to recognize.
+1
The partisanshit always destroys whatever merit any argument might have.
Yes, but... Consider how overweight GOP the mainstream economics media is.
Clowns to the Left of me Jokers to the Right...
I pity the other 45%.
At least 55% are paying attention.
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by Anonymous
So ridiculously funny, you can’t even make this sh$t up!! Awesome video!
Uh. We've gone past that kind of game. They longer screw you for all you have or try to make it easy or affordable. They attempt to screw you for everything you will ever have.
So awesome that you create your own user testimonials.
How exactly does HFT take returns away from long-term buy and hold index fund investors?
It put's a fake bidder in making price discovery moot. You're bidding against a giant bullshit machine who only operates in one fashion. Pay the price printed on the sell order or crash down to nothingness.
But isn't HFT market-neutral? It would be injecting fake bidders at times, and fake sellers at other times. If one spread their ETF (ie: SPY) purchases and sales over a number of years (as most dollar-cost averagers will), then how exactly are such people vulnerable to a market-neutral and distorting strategy in HFT?
Seems to me that HFT basically only robs short-term traders and daytraders, people whom I personally don't cry a tear for.
...been sayin' the same thing for two years.
If you just bought and held a great company, you would be fine today.
The traders? Sure, the largest bunch of them, they'll get burned with their charts, algorithms, and 'techniques' to beat the house of Lord Blankfein.
Too bad there's not very many 'good companies' anymore. In the olden days, names like GE could be trusted to create value. Now they're just bloated financials, masquerading as industrial companies because one small division happens to make gas turbine motors.
The deck is definitely stacked against people who want to create value though. Especially when total garbage like Netflix gets a 70X multiple, but good oil and gas producers can barely manage 10X earnings in this market. Any half-assed group of engineers could create a new Netflix right out of thin air, but building an oil resource base takes far longer.
Too bad there's not very many 'good companies' anymore. In the olden days, names like GE could be trusted to create value. Now they're just bloated financials, masquerading as industrial companies because one small division happens to make gas turbine motors.
The deck is definitely stacked against people who want to create value though. Especially when total garbage like Netflix gets a 70X multiple, but good oil and gas producers can barely manage 10X earnings in this market. Any half-assed group of engineers could create a new Netflix right out of thin air, but building an oil resource base takes far longer.
How? Here's how. It creates artificial doubt in the investors psyche. You cannot pull large amounts out of the market with HFT and still have the demand you would have had without the manipulation.
If we were all playing poker and the dealer kept reaching into the pot and taking out $100 or $1000 every hand, do you think it would attract as many players as if the money remained in the pot?
So that's what's being done every day. When we see Goldman or even the pathetic BAC with 93 out of 93 daily trading wins, do you think that attracts people?
It is clearly manipulation, trading at various firms with 100% wins does not happen legally.
1300, then 1450+
fully bought in 401k, yes, 401k.
Let the junking commence, but Paul B. Farrell is a terrible failure. I can count the times he's ever been right about anything of import on one hand.
Was at a confernece of institutional investors this weekend, and nearly everyone who spoke was a total gloomster. Every economic outlook presented was essentially David Rosenberg's. Robert Prechter spoke and people took him seriously.
I'm not a perma-bull, and right now I'm only about 20% net long, and my basement is full of MREs and water, and we're installing a high-efficiency woodburning fireplace insert so we'll be OK for a while if anything every happens to our nat gas supply, but if you just completely buy in to panic and complaint like Farrell, you will certainly make poor choices for your future.
"Warning: With the resurrection of the GOP and Reaganomics, Wall Street will skim more from Main Street, get even richer. And yes, you’ll lose more."
Really?........Really?
Nice commentary. Prudent preparations are a must. Mad Max? I don't think we get that far. But who really knows for sure ....... etc.
Edit: this was supposed to be under "long-shortys" comments ...
WTF : over
A reasoned and reasonable comment. You are prepared for a variety of outcomes - i.e. diversification is the cornerstone of 'investing'. Furthermore, I've personally found the realization of the "truth" to be quite freeing. Therefore, I no longer consider the number of FRN's I have to be the measure of my happiness - as long as I can provide for the family.
"my basement is full of MREs and water,"
And you think that you're rational?
If I thought about that, I would consider myself nuts a few years back, now I have not only the water and MREs but a fair amount of 1880's to 1790's technology with which to work out a daily life that will probably keep us going a while when everything quits working on these wonderful computers and technology.
Just consider that Thrift Shop down the road with the 50 to 100 year old tools that can use a little shine to put back to work doing things for you. Could not give them away for a dollar now.
Just wait. A pile of silver for the Lamp Oil and spare not the perfume.
Reason number 11, miss out on the 100-300% return on stocks since the crash rebounded.
Thanks,
“Why is privatizing Social Security such a turkey?” asks Sloan. “Because retirees shouldn’t have to depend on the market’s vagaries for survival money. More than half of married couples over 65 and 72% of singles get more than half their income from Social Security.” And “for 20% of 65-and-up couples and 41% of singles, Social Security is 90% or more of their income.”
Wow, this guy is a moron......in so many ways............how's he keep his job?
I think you're the moron here, What kind of non sense are you spouting?
Do you actually think putting Social security in the hands of these derivative Jackals is a good idea??
I'll give you one more chance to redeem yourself, Just explain how this guy is a moron?
Just explain, Im waiting.
no mention of valuations or expected returns or what to do except cry...fail!
The opportunity cost of not trading for in these volatile markets is too high for anyone that invests time and effort following the markets every day.
And now ladies and germs, for entertainment the entire family will enjoy:
Spot on, and Ireland voted for the austerity programs (I mean their bought and paid for leaders).
Sorry, didn't read all the comments.
But, but, but ... I thought The Goldman Sack was going God's work?
I got out at the November 2007 top and haven't been back since, unless it has been to short the market.
Don't trust it. Trust it even less since been reading ZH. Glad for ZH. This is a bad market.
Buy the fu@king dips, sell the crash. When?
“Warning: Stocks are a sucker bet at Wall Street’s rigged casino.”
the statement above is a given.
all traders know this.
if you do not know this, you should not be trading.
all the statements above are interesting.
one wonders.
what is the bottomline of the trading account of the above commenters?
the only thing that validates a trader is the bottomline of one’s trading account.
the only one that cares about one’s bottomline is oneself.
talk is cheap.
commenters try to make a point with their comments.
does one’s bottomline validate one’s comment?
are good traders good commenters?
are good commenters good traders?
do the emotional comments reflect the bottomline of one’s trading account?
most emotional traders are losers.
no self control.
a trader traders against oneself.
good trading on you.
twittering as stocktradr
If you're the same fucking joke of a trader on that shitty elitetrader site, I pray that anyone who is half inclined (I doubt there are any) to listen to your bullshit go and check out your apocalyptic blow-up back in 2007-2008 where literally every stock you claimed to be long and with leverage was down some 75% to 90%.
In fact, you were too embarrassed to show your face again until after "the bull run" where the equities that didn't go bankrupt retraced...what...at least 35% of their losses?
Mr. Margin called for you and RANG THE BELL!
I think if you buy high-dividend stocks in a highly diversified portfolio, reinvest
the dividends and hold forever, at least you've got a growing income stream over
time. Yes, it's too hard to compete with all the HFT's and funds on a daily basis,
but that doesn't necessarily mean you can't do well as an individual investor in
the long run....(and I do mean before you're dead!)
Our trusted leaders want nothing more than for you to trade based on your ideology so they can spit on it, cram it down your throat, and profit from it.
Click on the seppuku tab for a demonstration:
http://www.realultimatepower.net/index4.htm
I actually think this is the point Harry is trying to make. It has merits.
This should sum up any concerns.
Bill Hicks - Go Back to Bed America
http://www.youtube.com/watch?v=eR3KwODDzeY
and just how long has there been a call for the collapse of Wall St.?
it's starting to sound like the little boy who cried wolf.
Why don't you pull your head out of your ass.
Wall Street has collapsed.
What do you think Bernanke, Geithner et al are busy doing all day?
Not artificially supporting 'The Wealth Effect' of having algo-bots manned by porn surfers liquify tax dollars into purchases of toxic shit and treasuries so that fiat can be used to buy more stocks, and funneling cash in exchange for banking sector metastic cancers of assets?
Poetry ... pure poetry.
Look for the Fed to back away from keeping equities levitated at these lofty levels. In fact, rising equities could well be feeding into the rise in interest rates as a leading indicator of economic activity. If they tank equities, it will scare everyone into "safe" treasuries and push rates down.
Wouldn't most individuals rather be able to invest his or her own retirement money as he or she sees fit?
Personally, if I could opt-out of social security I would - as long as I can take ALL of my SS money and invest it in whatever I choose.
Note to Social Security - please stop sending me letters stating how much money I will receive when I retire. All of those letters, envelopes, postage and the time it takes to prepare all of that stuff is a HUGE waste of taxpayer's money.
There...now I feel slightly better...
Anyone else notice the ferocity of trolls lately?
Actually, I thought it was kind of tranquil lately in that regard!
Don't know if you were around earlier this year, say in March or April, but it was typical then to have many threads, ESPECIALLY any that even touched on the subject of gold, to be literally inundated with trolls to the point that meaningful discussion was useless. A lot of that, of course, could be attributed to one particularly vile, malevolent and relentless troll, MasterBater, later known as JohnnyBravo. He finally painted himself into a corner with golden paint a few months ago, and apparently has had enough shreds of dignity to refrain from reappearing after thoroughly discrediting himself.
Its not Wall Street - its You - look in the mirror:
- You thought you could make free money forever flipping houses on 100% leverage - Wrong
- You think you can make money trading on an intra-day basis - you never have and nothing has changed
- You have no investable, risk capital but want to make like some big shot billionaire - Wrong - you cannot invest if you dont have risk capital that you dont need for living expenses
- If you do some research and buy equities that are in sustainable, no-fad businesses - and Only buy when they are reasonably cheap and pay good dividends - then you can hope to make a modest 5-10% a year - in the Long Run. But no - who wants to do that.
Some good points. But... "then you can hope to make a modest 5-10% a year"
5%-10% isn't modest! That's a doubling between 14 and 7 years. Ask yourself this: would it be possible for everyone to be this modest? (all 6.5 billion of us)
Growth always leads to overshoot, which involves nasty corrections.
yes I know neo-Malthusian "systems" models with overshoot-collapse well - have played around with Stella etc. (hehe heh -inside joke). But the bet would be that select capitalist enterprises can infact grow much faster than the entire world in toto. I mean that is the whole point is'nt it? Sell more cigarettes and booze, pay it out in increasing stream of dividends.
- You have no savings - because you live way way above your means
- You have a lot os stupid debt - like your 25% interest rate on credit card balances
- You dont have the discipline to do the hard work to invest in skills and education for yourself.
- Your financial life is therefore - out of control
- So you want to gamble big on intraday trading basis to make up for it all
- Of course that does'nt work either - you just get further in the hole.
- So - OK - look around for someone else to blame.
- Does that about sum up the average predicament of the average american?
Add to this, the fact that WAY too many people believe that they're "productive," and or confuse wealth accumulation with being productive.
Is Netflix the result of socialism or capitalism?
All about gold with John Hathaway of Tocqueville Asset Management, Peter Munk, chairman and founder of Barrick Gold & James Grant, editor of Grant's Interest Rate Observer
http://www.charlierose.com/view/interview/11330
Charlie Rose Interview
YOU CANT HANDLE THE TRUTH- BEN BERNANKE
http://www.xtranormal.com/watch/7933323/
Guys.. you really need to decide whether you think there will be runaway inflation of long-drawn out deflation. Really.
Yes, you are right.And Helicopter Ben has already made the answer clear. Two choices, which one do you think will prevail? Tough times to come, no matter what, but which choice do you think will direct the future? My avatar reveals my thinking.
I heard about some certain faction in the GOP, wanted to privatize Social security. At first, i couldn't believe the stupidity of this idea, How gullible and stupid do they think we are?
We're talking about people's livelihood and these moron GOP Reaganomic idiots want to put live savings into a casino,
Wall st investment is for the insiders, if youre not one of those in the know, expect to lose bigtime, and serves you right for being an idiot.
Is it news? Paul Wilmott made this point quiet some time ago already (http://www.youtube.com/watch?v=ed2FWNWwE3I).
A bit OT but when we talk about gambling... Is this http://www.jpm.co.uk JP Morgan's site?;)
(d)
Let's see.
Zero Hedge has consistently reported weeks of outflow.
Zero Hedge has consistently reported quarterly income outflows to those Company officers vested in stock, selling out quickly, all at once or as fast as they can.
Zero hedge consistently shows how the Market can quit working when the money dries up and the mighty Fed can grease the workings with the Tax payer's money to preserve the illusion that all is well to the masses.
Zero Hedge has done us all a great service. If we don't make ready now then we will have to make do when the whole thing finally comes down.
You say it will never come down. I say just how much can the United States be carried by a weakening China while gaining obesity in debt and crying for basic needful things in life that now costs too much money for anyone to make.
Timing is everything. When, Paul, when?
Amazing. 10 reasons to sell shares and valuation levels not mentioned once.
Why do you bother posting this kind of stuff?
The same losers who have been crying wolf for the last three years are still singing the same wrong song. Admit you were wrong and get on board.
Familiarize yourself with 'bull market rallies in secular bear market,' check out 12 year chart, and educate thyself.
Farrell wears his politics on his sleeve. Democrats bear no responsibility for the mess we're in?
Hmm..buy after the crash. Great advice. Thanks. Here, I was gonna buy in at the top. Thanks for straightening me out pal.
Yea, that's it. Take market advice from an Obama voter.