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Simon Johnson: "We Now Have A Financial System That Is Completely Based On Moral Hazard"
Not much new here for regulars, but a must watch anyway.
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and soon Chris Dodd will be Treasury Secretary (you heard it here first)
We are impressed with Matt's command of the subject from a financial, political and overall style of social commentary. We first noticed his work for Rollingstone.
Without further introduction we have below
Being a puppet can't be that much fun, the giant hand of Uncle Sam up Mark Haines ass has to be rather uncomfortable.
Hey!!!!!!!! That would be a funny concept, making puppets out of all of the CNBC characters and do skits about Obama or Larry Summers, etc, etc, etc...
They ARE puppets!!
thanks for stating the obvious (system wide moral hazard).
Even bernanke is going to regret this someday.
it is completely out of hand.
the orgiastic buying of banks today after the credit suisse action is starting to make the dot com bust look mild.
i have never seen a chart rocket like bkx the last 4 days.
again, this is all completely out of hand.
Time to start buying MRE's and filling cans with gasoline. We're on target for2012
Phaesed,
Ju got it mang'......BlackSwan 2012,or before.....................
Once, again CNBC displays its ignorance of facts, a la David Faber.
That old dude is a jackass, he doesn't even try to hide his disgust at the suggestion that our pretty little economy might still be in trouble....they need to make TVs where you can punch someone through the screen...
now if that idea ever went into production we could turn our economy around...
Canary in a coalmine.
mark haines is an absolute douche.
Amen. Haines is a bigger douche than Beaker and Cramer put together. If possible. Never understood why he doesn't get a lot more shit from the comment section of financial blogs. The guy is a fucking journalist and knows jack shit about anything. He sits there and "harumphhs" and stammers his way through one non sequiter after another. Complete retard.
I'd love to smash his face into a car windshield. He slurs worse that Harry Carry in the 8th inning. I can hear him babbling "shtocksh win! Schtocksh win!"
Haines sounds just like those idiots on Fox who were mocking Peter Schiff back in 2007.
We'll probably see Haines in the upcoming "Simon Johnson was Right" youtube.
The bid here is endless, especially in the TBTF banks. I guess when money is free and losses are not your own, risk is not in the vocabulary.
The day of reckoning may never come, but if it does, it'll be a 30% one-day debacle.
"isn't there anyone who comes on this program and doesn't see storm clouds on the horizon?"
slap my ass and call me charlie, i was about to ask the opposite question
I applaud Simon Johnson's efforts to bring financial awareness to the benighted masses. Zerohedge appeals to the snarky cognoscenti. Let's not confuse the two. Kudos Simon.
Agreed. And I still think his May 2009 article in Atlantic Monthly was the best contribution to jounalism this past year
Definately one of the best articles of the year, and well worth a read for anyone who missed it:
http://www.theatlantic.com/doc/200905/imf-advice
I like Patrick the Painter's idea. The people make on a run on their banks and unload their stock holdings on the last business day of the 1st quarter. In order to expediate the process of price discovery, of our money, as it has become a national security issue. Take the week off from your measley job and be available to hand out Jimmy John sandwiches and Fat Tire beers. Also to escort people with large bags of cash back to their homes expecially the elderly. This process might drag on for a bit, but by 4th of July we shall have figured out what our money is really worth. Cause the People are to Small to Fail. GGo forward and help deleverage the system.
The Dukes of Moral Hazzard
one step ahead of the law
speeding off the cliff
and Daisy's nowhere in sight
Possum on a Gum Bush!
LOL
OK, I've decided to buy physical gold coins, which probably signals the market has topped , but anyway ...
Where is the best place to buy them; coin dealers, online, a mint, other? Looking at the Canadian mint's website last night, I saw they wanted 99.95 cad for a 1/25 oz red maple coin, which I figured to be way over spot, why is that?
Any suggestions from you gold bugs out there? Thanks
I'd be the first to call myself uninformed, but you might try BullionDirect. It's on the intertubes.
http://www.nwtmint.com/
kitco.com is awesome. You gotta have cash with them. I've had a lot of luck on ebay. TONs of krugerrands, american eagles, maple leafs, etc. on ebay. Just read the feedback carefully. You are going to pay a big premium over spot for any of these coins. For example I was paying at least 20% over spot back when I was buying them between $900 and $1000 each. So what?
If you are in Canada, you can purchase it directly from any scotiabank. Coins have 7% tax. Wafers/ingots/bullions don't. Otherwise, i like kitco: https://online.kitco.com/bullion/completelist.html
If you are in Canada, you can buy directly from scotiabank.
You pay a 7% tax on coins but not on bullions.
Otherwise, I suggest kitco:
https://online.kitco.com/bullion/completelist.html
? #1) http://www.tulving.com
? #2) Numismatic value.
I wish some one writes a one sticky article about all the details about buying gold.
A local coin dealer is usually safe place to start.
Coin shows, if there is one in the area.
Stick with reputable sources.
In general, its best to buy something that you can actually see and hold first.
I highly recommend a digital scale and a caliper. (If a "gold" coin is not the right size and weight, you've been had.)
And so Gresham's Law rears its ugly head.
And so Gresham's Law rears its ugly head.
Since you have called the top, I'll
sell you my maples for $1250!
But seriously, if you have a good working
relationship with a reputable coin dealer,
thats where I find the best deals, as far as premiums
over spot go.
For instance, at goldline.com , with spot @ 1130,
maples are going for $1310, which is outrageous.
Dealer price would be about 100 bucks cheaper @ $1200
I am lucky, not only have a dealer I trust, but one I like....
small stuff is way over spot...
Don't forget Ag....
good luck !
I made several purchases from Lear as they seem to be pretty consistently lower cost than the other majors. However, their fulfillment of my last (rather sizeable) order was terrible. They finally did it after about 6 weeks when I threatened to walk. Be sure you take shipping costs into account when comparing. Some embed it in the price and some add it on after.
Markup over spot varies with dealer as does bid-ask. Can be significant, so shop around
I have always found good prices and excellent service with CMI Gold/Silver in Phoenix. 800 328 1380. I have heard from a friend that he is very satisfied with Northwest Territorial Mint.
I am surprised it was that low from the Canadian Mint. I live in Ottawa (home of the mint) and can atest that their prices have always been crazy when buying small quantities. Their coins are of the collector variety and are priced 25-50% over spot. Even plain old 1 ounce silver pieces can be as high as $75 because its got a limited edition animal design on it or such. The Post office also sells coins from the mint. I saw a 1/25 gold piece in the local PO a few weeks ago and I am sure it was $135. Thats $3375 per ounce Canadian. It has a real pretty case and all but.... They do have deals from time to time but more for large bulk/wholesale orders like a monster box of 1 oz silvers. Those monster boxes have something like 20-30 rolls of 25 1 oz coins. Got $10K to spend on silver?
Avoid the mint unless you feel the need to have mint uncirculated coins or special editions.
Also, in US, purchases over $1000
not taxed. No idea why, but that is definitely
the case...
Find a local coin dealer who has been in business along time. The longer the better. If you buy junk silver or gold Krugger rands, you can buy at slightly above spot. Krugger Rands require Government paperwork when you sell, just in case you might be a narco-terrorist. What a bunch of crap. Purchasing Gold Eagles or Buffaloes or Silver Eagles directly from a coin shop can be significantly less expensive than ordering over the Internet and then paying a delivery fee. The guy I go to runs a family business and the coin shop has been in operation since 1970.
www.goldmoney.com
offshore account; money backed by physical, better than having it yourself, you pay 2% load to buy 0% to sell. can buy gold, silver, platinum.
they are audited and have over $800 mln in holdings.
I live in Asia. The gold market is legal and stable. They have never confiscated gold like in The US. The money you save on commissions will pay for the flight and make for a nice vacation. http://taxfreeoffshoregold.blogspot.com
And it is outside the long arm of the IRS and US government crooks. Good luck in the US, You're going to need it.
The American people under the fed...
http://tinyurl.com/yddrb3m
Gold bugs on ZH?!?!?! Naaah!
Hate being called a goldbug.
Just going with what works
When it stops working, I'll sell.
Christ almighty already
Keep the winners, sell the fucking loosers,
its that simple....
Long CH4
Long Au
Long Ag
Exactly. Just regular kooks. No Gold Bugs here. Nothing to see. Move along. Return to your homes.
I like Patrickthe Painters idea. Have the people withdrawl their savings in cash as well as unwinding their stock holdings on the LAST business day of the quarter. This will expidate the process of discovery and since it is a national security issue we have a right to sound money. You should also plan to take the week of from your measley job to be available to hand out sandwiches and beers to the citizens in the long lines waiting for their cash. Also possiblely escort some of them home if they have slot of cash or/and are elderly and for other security reasons. Cause the People are to small to fail! By the 4th of July we shoulhave it figured out.
Last night having drinks with a friend, he says "you think all those cash for gold ads and billboards are somehow sponsored by the government?" Made me wonder that they might be trying to collect as much from the citizens to replenish the treasury before they take down everything. Really pretty simple concept, buy up the stuff though shell companies from the little dealers, spend a wad of fiat's, then when target is met report to Ben. Hummm. Never have been a tin foil hat wearer, but I am quickly becoming one.
Just then the gov will make it illegal to own gold and will come confiscate the metal. It won't be the first time.
About the same time Goldman goes private to forever seal the book of trades that shows them SHORT US stock and oil markets in 2008. Enough to get the avalanch started. Then we have FED, getting a 2 year window to follow new insight/oversight regulations. 2 fu**king years! The conspirators must be very close to accomplishing their goal.
The Nothing to See Here Network anchors ala CNBC anchors are like deer in headlights when someone dares to usher a bearish sentiment, now that is financial entertainment at its finest...
I wonder if those anchors are much better positioned than we think they are...
"Their balance sheets equal sixty percent of the GDP."
Now, that is prescient! And gov't-subsidized real estate makes up thirty percent of the GDP, and subsidized insurance makes up a bunch more.....yup, there is NO economy.
"The next twelve months are going to be exciting!"
Yeah, like jumping off a 1,000-foot cliff, maybe?
"Just look at the numbers..."
Definitely, Simon. And the numbers tell us there is no economy, and all that junk paper being peddled doesn't equal to any actual economic engine.
Ergo, there is no economic engine to restart this nonexistent economy! Keynes strongly differentiated between UNCERTAINTY and RISK.
All along, these crackerjacks have been investing in uncertainty and calling it risk.
Well, we are now in the AGE of UNCERTAINTY.
And back-to-back economic meltdowns may be be the least of our worries.
During his campaign, Barack Obama surrounded himself with progressive leaders who believed that we could prevent another economic crisis by enforcing tougher regulations for Wall Street. However, once he took office, he sent those progressives packing, and filled his cabinet with former Wall Street insiders who want to keep the system operating out of the scope of the government. This isn’t the "change" that we were expecting, and this is one of the reasons that the president is now facing an uphill battle to win back the votes of his base. Robert F. Kennedy, Jr. talks about the president’s sell out with Matt Taibbi, political correspondent for Rolling Stone magazine.
http://tinyurl.com/yfcph7d
Most of the presenters on CNBC are nothing but "pom-pom" boys and girls but Art Cashin and Rick Santelli certainly to provide the counter comment.
The US Government will do everything in its power to prevent the pension funds, mutual funds, 401K plans, insurance policies, etc etc from turning to dust just as the baby boom generation "retires."
"Sorry folks, but all that money you invested is gone. You got tricked fair and square, and now its time to move on."
If that were to happen, it would become obvious that modern (post 1980, when the fin services industry was turned loose collecting "retirement" assets) Wall Street is a giant scam.
Once people realize Wall Street is a scam (and that fractional reserve banking is a perpetual motion machine), its game over for the bankers. Probably all you traders too.