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Some Less Than Rosy Scenarios From Joe Saluzzi And Jim Rogers
Themis Trading's Joe Saluzzi, who still has oddly not be asked to discuss his perspectives on the flaws in not only HFT but broader market structure and topology issues before a congressional commission, is interviewed by Bloomberg (and amusingly Carol Massar, after mocking him the last time around, finally gives him props for having been right all along). Fans of A. Joseph Cohen would be better advised to look elsewhere for their daily dose of Vitamin Hopium. The take home message"It's gonna crumble, it's just a matter of when." Alas, with gold now at $1,241 even lifelong Keynes fanatics are finally throwing in the towel. The time when we could have done something to fix the system is now long gone, courtesy of the administration's waffling for the past two years as instead of getting to the root cause of the last and future crash, it was focused on bailing out bankrupt banks.
And in related news, Jim Rogers, joins the Euro death squads, and says that the $1 trillion bailout is the "Nail in the coffin for the euro." As Rogers said in discussing the now failed bailout: "I was stunned. This
means that they’ve given up on the euro, they don’t particularly
care if they have a sound currency, you have all these countries
spending money they don’t have and it’s now going to continue. It’s a political currency and nobody is minding the
economics behind the necessities to have a strong currency. I’m afraid it’s going to dissolve. They’re
throwing more money at the problem and it’s going to make things
worse down the road.”
Rogers' investment recommendations: "Investors should buy precious metals including gold
or currencies of countries that have large natural resources." We still would recommend staying away from the Chinese imminently popping bubble, which will likely reprice industrial commodities by 30-50%.
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Man when do you sleep?
We are all grateful ZH & TD never sleep.
Let's call 'em up in Zurich and ask: +41 43 501 6717
That's what I want to know...
Well done, Jim Roger. Commodities players are the big losers so invite people to join the crowd.
LOL: Jim Rogers, "I am stunned. I am long the Euro." Ummmm....Dolt!
He has to be more sophisticated than that, does he?
Gee pick a dolt as your investment guru....lol....or do it yourself.
A lot of the time Rogers usually claims (publicly) to be long/short so many and obscure positions it's hard to nail him down.
- - - - -
-What portion of S&P 500 earnings is Euro denominated again?
around 40%.
Peeps - think about this: Japan is America's bitch - has always been - a loyal one too. Europe was carrying on like they were big swinging dicks - until last week. Now they too are America's bitch. That leaves China. Once we get them on their knees - ya know - property bubble collapse - etc - then we be the king of da hill. Undisputed and uncontested rulers over the rubble that we have created.
You're not kidding with that name, eh?
Yeah, I can't really tell if he's kidding or not either. In other recent postings, he's still trumpeting the top-of-the-pyramid USA! USA! chant ad nauseum. Perhaps he's a more stealthy, more subtle disinformation agent? After all, that Wanker guy was just too freaking obvious.
Yeehaw - it do feel go-o- d to be the top dung beetle - dont it? Never mind the stink and stuff.
Only tangentially related but one of the conditions of the Toty-LibDem agreement to form the UK government is that the Tories enact the Lib Dem policy of breaking up the banks and seperating retail from trading operations.
No way of knowing if it'll survive as a policy, but its part of the formal agreement between the two parties.
Interesting if the UK does as it'll add to pressure in the US to reinstate Glass Steagall, which is basically the same thing.
Jim Rodgers is fixated on fiscal Discipline when the primary agent for contagion in Europe is the monetary madness that was allowed to explode to gigantic proportions within the EU.
The 3% deficit rule prevented the average German or French saver from investing his surplus savings in his local post office government bond.
These savings were instead transferred to commercial banks which went on a crazy investment binge based to a large extent on building excess housing in the Mediterranean and elsewhere.
These "investments" do not increase the capacity of the Physical economy to produce extra wealth but are consumption sinks.
Previously the rational for debt was to take money from the future to invest for the future - the neo liberal experiment turned this around somewhat when it borrowed from the future to spend for today.
Germany would have been far better served if its surplus savings were directed towards Government investment in energy independence and other useful utilities.
Giving these vast sums of money to 2nd world governments which have been flooded by unearned wealth was a recipe for disaster since day one - It is no surprise that the ECB which is a agent for the private banks was instrumental in this fiasco - but they now may have gone to far as they have defecated in their own nest and destabilized their host countries.
So you are essentially saying governments should run deficits to absorb surplus savings and spend those surpluses on govt. sponsored projects.
Is that not how we entered this mess we are in now? Your confidence in politicians is quite naive.
If the private individual has surplus savings then under this monetary system something or someone else runs a deficit.
If you could imagine a simplified Germany without external trade and if there is a surplus from the private sector`then the Government would have to run a deficit.
Now the Government under Maastricht could only run a 3% Deficit so therefore the private savings of Germans had to go to a external source.
All of our money is effectively debt - there is no true savings.
The only parameter then is the value and true return of the investment over the long term , i.e. does the debt create income over the long term.
Now until the monetarist experiment took hold of Continental economics in the 80s there was a understanding that governments would spend a certain fraction of their money on utilities which was obtained from taxes or debt.
The private banks would cater for small business loans , consumer loans and other general banking utilities while the governments would build highly capital intensive utilities such as power stations and the like.
The massive profits witnessed by corporations and others are now false - they were just running down the infrastructure developed previously by government and transferred via privatisation schemes and expressing this as profit - great fun while it lasts but a bitch when the party's over.
Since the Thatcher/ Regan revolution Government no longer spent money on such projects so therefore the private sector banks filled the savings vacuum previously held by government.
They unfortunately failed to provide any meaningful capital growth unless you consider short term goods such as cars. Houses while necessary do not increase the true capital and production output of a area.
You ask me do I trust politicians ,no - but that is irrelevant as for some time now they have had to raise debt capital via banks - they must use banks as a conduit for them to raise capital.
They can no longer rely on savers through their own post office.
I am not arguing for the complete destruction of banks, on the contrary they are a necessary utility that is thee most important part of the consumption end of the economy but the economy cannot live on consumption forever - it must build capital.
My argument is for a two tiered debt structure - low interest low risk government debt paper and also private banks with higher deposit interest payments but with the possibility of failing including the possibility of losing ones deposit.
Why such a structure - if government fails catastrophically you better learn to hunt , if a bank fails in a ideal world you may lose some money but you find a new bank with the remainder of your money -not the end of the world really.
END OF TRADING DAYS
http://williambanzai7.blogspot.com/2010/05/end-of-trading-day.html
Is there an article in there or just the picture?
Just the picture, which says it better than words.
Massar and Betty Liu are bimbos
Doesn't stop me from wanting to impregnate them.