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Bill Gross: "The Game As We All Have Known It Appears To Be Over"

Tyler Durden's picture





 

First it was Bob Janjuah throwing in the towel in the face of central planning, now we get the same sense from Bill Gross who in his latest letter once again laments the forced transfer of risk from the private to the public sector: "The game as we all have known it appears to be over... moving for the moment from private to public balance sheets, but even there facing investor and political limits. Actually global financial markets are only selectively delevering. What delevering there is, is most visible with household balance sheets in the U.S. and Euroland peripheral sovereigns like Greece." Gross' long-term view is well-known - inflation is coming: "The total amount of debt however is daunting and continued credit expansion will produce accelerating global inflation and slower growth in PIMCO’s most likely outcome." The primary reason for Pimco's pessimism, which is nothing new, is that in a world of deleveraging there will be no packets of leverage within the primary traditional source of cheap credit-money growth: financial firms. So what is a fund manager to do? Why find their own Steve McQueen'ian Great Escape from Financial Repression of course. " it is your duty to try to escape today’s repression. Your living conditions are OK for now – the food and in this case the returns are good – but they aren’t enough to get you what you need to cover liabilities. You need to think of an escape route that gets you back home yet at the same time doesn’t get you killed in the process. You need a Great Escape to deliver in this financial repressive world." In the meantime Gross advises readers to do just what we have been saying for years: buy commodities and real (non-dilutable) assets: "Commodities and real assets become ascendant, certainly in relative terms, as we by necessity delever or lever less." As for the endgame: "Is a systemic implosion still possible in 2012 as opposed to 2008? It is, but we will likely face much more monetary and credit inflation before the balloon pops. Until then, you should budget for “safe carry” to help pay your bills. The bunker portfolio lies further ahead."

From Bill Gross:

The Great Escape: Delivering in a Delevering World

  • When interest rates cannot be dramatically lowered further or risk spreads significantly compressed, the momentum begins to shift, not necessarily suddenly, but gradually – yields moving mildly higher and spreads stabilizing or moving slightly wider.
  • In such a mildly reflating world, unless you want to earn an inflation-adjusted return of minus 2%-3% as offered by Treasury bills, then you must take risk in some form.
  • We favor high quality, shorter duration and inflation-protected bonds; dividend paying stocks with a preference for developing over developed markets; and inflation-sensitive, supply-constrained commodity products.

About six months ago, I only half in jest told Mohamed that my tombstone would read, “Bill Gross, RIP, He didn’t own ‘Treasuries’.” Now, of course, the days are getting longer and as they say in golf, it is better to be above – as opposed to below – the grass. And it is better as well, to be delivering alpha as opposed to delevering in the bond market or global economy. The best way to visualize successful delivering is to recognize that investors are locked up in a financially repressive environment that reduces future returns for all financial assets. Breaking out of that “jail” is what I call the Great Escape, and what I hope to explain in the next few pages.

The term delevering implies a period of prior leverage, and leverage there has been. Whether you date it from the beginning of fractional reserve and central banking in the early 20th century, the debasement of gold in the 1930s, or the initiation of Bretton Woods and the coordinated dollar and gold standard that followed for nearly three decades after WWII, the trend towards financial leverage has been ever upward. The abandonment of gold and embracement of dollar based credit by Nixon in the early 1970s was certainly a leveraging landmark as was the deregulation of Glass-Steagall by a Democratic Clinton administration in the late 1990s, and elsewhere globally. And almost always, the private sector was more than willing to play the game, inventing new forms of credit, loosely known as derivatives, which avoided the concept of conservative reserve banking altogether. Although there were accidents along the way such as the S&L crisis, Continental Bank, LTCM, Mexico, Asia in the late 1990s, the Dot-coms, and ultimately global subprime ownership, financial institutions and market participants learned that policymakers would support the system, and most individual participants, by extending credit, lowering interest rates, expanding deficits, and deregulating in order to keep economies ticking. Importantly, this combined fiscal and monetary leverage produced outsized returns that exceeded the ability of real economies to create wealth. Stocks for the Long Run was the almost universally accepted mantra, but it was really a period – for most of the last half century – of “Financial Assets for the Long Run” – and your house was included by the way in that category of financial assets even though it was just a pile of sticks and stones. If it always went up in price and you could borrow against it, it was a financial asset. Securitization ruled supreme, if not subprime.

As nominal and real interest rates came down, down, down and credit spreads were compressed through policy support and securitization, then asset prices magically ascended. PE ratios rose, bond prices for 30-year Treasuries doubled, real estate thrived, and anything that could be levered did well because the global economy and its financial markets were being levered and levered consistently.

And then suddenly in 2008, it stopped and reversed. Leverage appeared to reach its limits with subprimes, and then with banks and investment banks, and then with countries themselves. The game as we all have known it appears to be over, or at least substantially changed – moving for the moment from private to public balance sheets, but even there facing investor and political limits. Actually global financial markets are only selectively delevering. What delevering there is, is most visible with household balance sheets in the U.S. and Euroland peripheral sovereigns like Greece. The delevering is also relatively hidden in the recapitalization of banks and their lookalikes. Increasing capital, in addition to haircutting and defaults are a form of deleveraging that is long term healthy, if short term growth restrictive. On the whole, however, because of massive QEs and LTROS in the trillions of dollars, our credit based, leverage dependent financial system is actually leverage expanding, although only mildly and systemically less threatening than before, at least from the standpoint of a growth rate. The total amount of debt however is daunting and continued credit expansion will produce accelerating global inflation and slower growth in PIMCO’s most likely outcome.

How do we deliver in this New Normal world that levers much more slowly in total, and can delever sharply in selective sectors and countries? Look at it this way rather simplistically. During the Great Leveraging of the past 30 years, it was financial assets with their expected future cash flows that did the best. The longer the stream of future cash flows and the riskier/more levered those flows, then the better they did. That is because, as I’ve just historically outlined, future cash flows are discounted by an interest rate and a risk spread, and as yields came down and spreads compressed, the greater return came from the longest and most levered assets. This was a world not of yield, but of total return, where price and yield formed the returns that exceeded the ability of global economies to consistently replicate them. Financial assets relative to real assets outperform in such a world as wealth is brought forward and stolen from future years if real growth cannot replicate historical total returns.

To put it even more simply, financial assets with long interest rate and spread durations were winners: long maturity bonds, stocks, real estate with rental streams and cap rates that could be compressed. Commodities were on the relative losing end although inflation took them up as well. That’s not to say that an oil company with reserves in the ground didn’t do well, but the oil for immediate delivery that couldn’t benefit from an expansion of P/Es and a compression of risk spreads – well, not so well. And so commodities lagged financial asset returns. Our numbers show 1, 5 and 20-year histories of financial assets outperforming commodities by 15% for the most recent 12 months and 2% annually for the past 20 years.

This outperformance by financial as opposed to real assets is a result of the long journey and ultimate destination of credit expansion that I’ve just outlined, resulting in negative real interest rates and narrow credit and equity risk premiums; a state of financial repression as it has come to be known, that promises to be with us for years to come. It reminds me of an old movie staring Steve McQueen called The Great Escape where American prisoners of war were confined to a POW camp inside Germany in 1943. The living conditions were OK, much like today’s financial markets, but certainly not what they were used to on the other side of the lines so to speak. Yet it was their duty as British and American officers to try to escape and get back to the old normal. They ingeniously dug escape tunnels and eventually escaped. It was a real life story in addition to its Hollywood flavor. Similarly though it is your duty to try to escape today’s repression. Your living conditions are OK for now – the food and in this case the returns are good – but they aren’t enough to get you what you need to cover liabilities. You need to think of an escape route that gets you back home yet at the same time doesn’t get you killed in the process. You need a Great Escape to deliver in this financial repressive world.

What happens when we flip the scenario or perhaps reach the point at which interest rates cannot be dramatically lowered further or risk spreads significantly compressed? The momentum we would suggest begins to shift: not necessarily suddenly or swiftly as fatter tail bimodal distributions might warn, but gradually – yields moving mildly higher, spreads stabilizing or moving slightly wider. In such a mildly reflating world where inflation itself remains above 2% and in most cases moves higher, delivering double-digit or even 7-8% total returns from bonds, stocks and real estate becomes problematic and certainly much more difficult. Real growth as opposed to financial wizardry becomes predominant, yet that growth is stressed by excessive fiscal deficits and high debt/GDP levels. Commodities and real assets become ascendant, certainly in relative terms, as we by necessity delever or lever less. As well, financial assets cannot be elevated by zero based interest rate or other tried but now tired policy maneuvers that bring future wealth forward. Current prices in other words have squeezed all of the risk and interest rate premiums from future cash flows, and now financial markets are left with real growth, which itself experiences a slower new normal because of less financial leverage.

That is not to say that inflation cannot continue to elevate financial assets which can adjust to inflation over time – stocks being the prime example. They can, and there will be relative winners in this context, but the ability of an investor to earn returns well in excess of inflation or well in excess of nominal GDP is limited. Total return as a supercharged bond strategy is fading. Stocks with a 6.6% real Jeremy Siegel constant are fading. Levered hedge strategies based on spread and yield compression are fading. As we delever, it will be hard to deliver what you have been used to.

Still there is a place for all standard asset classes even though betas will be lower. Should you desert bonds simply because they may return 4% as opposed to 10%? I hope not. PIMCO’s potential alpha generation and the stability of bonds remain critical components of an investment portfolio.

In summary, what has the potential to deliver the most return with the least amount of risk and highest information ratios? Logically, (1) Real as opposed to financial assets – commodities, land, buildings, machines, and knowledge inherent in an educated labor force. (2) Financial assets with shorter spread and interest rate durations because they are more defensive. (3) Financial assets for entities with relatively strong balance sheets that are exposed to higher real growth, for which developing vs. developed nations should dominate. (4) Financial or real assets that benefit from favorable policy thrusts from both monetary and fiscal authorities. (5) Financial or real assets which are not burdened by excessive debt and subject to future haircuts.

In plain speak –

For bond markets: favor higher quality, shorter duration and inflation protected assets.

For stocks: favor developing vs. developed. Favor shorter durations here too, which means consistent dividend paying as opposed to growth stocks.

For commodities: favor inflation sensitive, supply constrained products.

And for all asset categories, be wary of levered hedge strategies that promise double-digit returns that are difficult in a delevering world.

With regard to all of these broad asset categories, an investor in financial markets should not go too far on this defensive, as opposed to offensively oriented scenario. Unless you want to earn an inflation adjusted return of minus 2-3% as offered by Treasury bills, then you must take risk in some form. You must try to maximize risk adjusted carry – what we call “safe spread.”

“Safe carry” is an essential element of capitalism – that is investors earning something more than a Treasury bill. If and when we cannot, then the system implodes – especially one with excessive leverage. Paul Volcker successfully redirected the U.S. economy from 1979-1981 during which investors earned less return than a Treasury bill, but that could only go on for several years and occurred in a much less levered financial system. Volcker had it easier than Bernanke/King/Draghi have it today. Is a systemic implosion still possible in 2012 as opposed to 2008? It is, but we will likely face much more monetary and credit inflation before the balloon pops. Until then, you should budget for “safe carry” to help pay your bills. The bunker portfolio lies further ahead.

Two additional considerations. In a highly levered world, gradual reversals are not necessarily the high probable outcome that a normal bell-shaped curve would suggest. Policy mistakes – too much money creation, too much fiscal belt-tightening, geopolitical conflicts and war, geopolitical disagreements and disintegration of monetary and fiscal unions – all of these and more lead to potential bimodal distributions – fat left and right tail outcomes that can inflate or deflate asset markets and real economic growth. If you are a rational investor you should consider hedging our most probable inflationary/low growth outcome – what we call a “C-“ scenario – by buying hedges for fatter tailed possibilities. It will cost you something – and hedging in a low return world is harder to buy than when the cotton is high and the living is easy. But you should do it in amounts that hedge against principal downsides and allow for principal upsides in bimodal outcomes, the latter perhaps being epitomized by equity markets 10-15% returns in the first 80 days of 2012.

And secondly, be mindful of investment management expenses. Whoops, I’m not supposed to say that, but I will. Be sure you’re getting value for your expense dollars. We of course – perhaps like many other firms would say, “We’re Number One.” Not always, not for me in the summer of 2011, but over the past 1, 5, 10, 25 years? Yes, we are certainly a #1 seed – with aspirations as always to be your #1 Champion.

William H. Gross
Managing Director

 


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Tue, 03/27/2012 - 08:22 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Excellent.

Tue, 03/27/2012 - 08:25 | Link to Comment Colombian Gringo
Colombian Gringo's picture

Gross is talking his book. Having said that, his suggestions as follows are worthy of consideration:

In summary, what has the potential to deliver the most return with the least amount of risk and highest information ratios? Logically, (1) Real as opposed to financial assets – commodities, land, buildings, machines, and knowledge inherent in an educated labor force. (2) Financial assets with shorter spread and interest rate durations because they are more defensive. (3) Financial assets for entities with relatively strong balance sheets that are exposed to higher real growth, for which developing vs. developed nations should dominate. (4) Financial or real assets that benefit from favorable policy thrusts from both monetary and fiscal authorities. (5) Financial or real assets which are not burdened by excessive debt and subject to future haircuts.

 

Tue, 03/27/2012 - 08:43 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Turns out his book may be right.

 

Soooo.....this is what the end looks like huh?

 

I was expecting.....I dunno.....more.

 

Tue, 03/27/2012 - 09:00 | Link to Comment Comay Mierda
Comay Mierda's picture

he forgot to mention to buy AAPL

Tue, 03/27/2012 - 09:08 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I stand in the presence of brilliance.

 

Tue, 03/27/2012 - 10:24 | Link to Comment Richard Chesler
Richard Chesler's picture

It's not over until the fat banker sings, in prison.

 

Tue, 03/27/2012 - 11:48 | Link to Comment Esculent 69
Esculent 69's picture

It's not over until the fat banker screams in prison. 

There it's fixed, and your welcome

Wed, 03/28/2012 - 08:28 | Link to Comment Muddy1
Muddy1's picture

Then I guess it won't ever be over because no bankers have gone to jail following the 2008 financial disaster.  They continue to earn big bonuses and enjoy a flush lifestyle at the expense of the US taxpayer.

Tue, 03/27/2012 - 09:10 | Link to Comment jekyll island
jekyll island's picture

Gross says this as he positions himself to frontrun the fed buying back MBS.  Whole lotta nothing in this article. 

Tue, 03/27/2012 - 11:40 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

Whole lotta nothing in this article.

Agree.

Makes me wonder if fund managers get paid by the word (of stupid nonsensical jibberish they write).

1) Fed has taken over markets for all practical purposes.

3) Bernanke believes stocks are the economy.  Nothing else matters.  Jobs don't matter.  Employment doesn't matter.  Productivity doesn't matter.   Exports don't matter. 

4) Bernanke believes people should just spend and spend to get the economy going again, but he never says where the money will come from to do all that spending.  He prints boatloads of money so the government can keep spending, but he's not giving any of it to consumers so they can keep spending.

5) Invest in whatever the Fed is investing in (pumping money into) ...like AAPL in particular and stocks in general.

6) Your gains will be good in nominal terms, you'll like the rising numbers, but you'll be disappointed when you discover you haven't gained any more real wealth due to the shrinking value of the dollar.   You just pay more taxes.

7) This policy of printing and pouring money into stocks (and government coffers) will continue for some time.  You can be confident stocks will keep rising (and government debt will keep rising). 

8) But the US dollar will keep losing value (from all the printing). 

9) One day the rest of the world will get tired of watching their US dollar reserves steadily lose value, they'll say "enough", and start dumping those reserves (like Treasuries).   That's when the US dollar will collapse, overnight, and all your stock gains will be worthless.

10) That's when hard assets like gold & silver will skyrocket in price.  But you won't be able find any to buy.  Nobody will want your worthless US dollars.

Tue, 03/27/2012 - 09:23 | Link to Comment Zero Govt
Zero Govt's picture

Bill used the words "delever" and "deliver" so often i couldn't distinguish the two, my head now hurts and my mind is spinning

i'm going back guys to re-read a paragraph at a time, then take a break between each para...i'll post something in an hour or two (if i can communicate after the 2nd reading!!)

Tue, 03/27/2012 - 09:14 | Link to Comment kito
kito's picture

Bill is GROSSly optimistic about the world.........

Tue, 03/27/2012 - 12:02 | Link to Comment Jethro
Jethro's picture

It's looking more like it'll be a cross between "The Worst Hard Time", "1984", and "Atlas Shrugged" minus happy endings, with occasional pockets of "Lord of the Flies". 

Tue, 03/27/2012 - 11:35 | Link to Comment Calmyourself
Calmyourself's picture

There is no more, their plan (TBTF) is to grind us down, no systemic failures, no bubble bursting, no reset.  The slow grind as your liabilities cannot be managed with your income no matter what risk you take and of course many will be sucked into mini-bubbles to be shorn at their leisure.    This is it the new normal, the press manages expectations, circuses to keep the anesthesia running and the divide and conquer strategies to tie the mess together.   Our form of Government and Capitalism was meant not for a stupid and amoral people and when it is applied to such a group the results are what you see.

Tue, 03/27/2012 - 12:37 | Link to Comment KnightsofNee
KnightsofNee's picture

I couldn't have said it any better than that, therefore I am stealing it and using the above without credit to the author. Brilliant! I love ZH!

Tue, 03/27/2012 - 13:33 | Link to Comment sgt_doom
sgt_doom's picture

".. the press manages expectations.."

Ya know, I was just explaining to my retarded neighbor this morning (not actually retarded, just your typical Ameritard) that the reason Neal Conan has a job for life with NPR*** is exactly the same reason he had lovely things to say about American jobs offshoring back in the 1980s, then again in the 1990s, then again in 2000 (after which nobody with a brain would have continued listening to his or any other NPR-Fox-CNN-ABC-CBS-PBS show, etc.).

Some neocon swine from Canada, named Jonathan Kay, who wrote a pile of drivel called "Among the Truthers" appeared on no less than 17 NPR, PRI, APM, and CBC shows where he simply made ad hominem attacks agains those question the official 9/11 conspiracy theory of Cheney-Rumsfeld-Bush, and offered nothing factual --- while Jesse Ventura was invited to post at ultra-rightwinger Ariana Huffington's online rag, wereupon Gov. Ventura just mentioned that questions should be raised about the 9/11 investigation and his piece was immediately pulled and he was banned from that online rag!

What media?  What economy?  They have long ceased to exist in Amerika!

***Please don't respond about any artificial differences between NPR and PRI and APM and CBC and BBC, they are all intricately interlocked between each other and those foundations that support them and redirect their propaganda.

Tue, 03/27/2012 - 15:00 | Link to Comment Calmyourself
Calmyourself's picture

Glad you like it, the more I look at it the more I want to edit it..  Ask yourself when the next crash caller types up his rant whom would that crash serve?  If you cannot put together a power bloc in receipt of vast benefits from that particular ocurrence it will not happen.  We have crossed the rubicon, polling shows our masters that we are too stupid as a people to resist in an intelligent manner.  We have cast the die, the TBTF's will manage us from here out and there is very little we can do about it.  Hunger, belly gnawing hunger is the only motivator sufficient to force the people into action strong enough to compel real change. 

Good luck to all of you Winstons', may your chocolate ration always increase..

Tue, 03/27/2012 - 08:31 | Link to Comment Oh regional Indian
Oh regional Indian's picture

if anyone needs a lackey like Gross to tell them where they are at, then they are already in deep trouble. All of Gross's "Laments" are scripted.

The entire "Public Discourse" is scripted. This insider's insider has the woe-is-you role. 

Just look around, it's a tell. What a boring, meaningless, repetitious note. 

When Bill Gross gives away a 100 million dollars to help the Poor speeple he spent decades fleecing, I'll take him seriously.

ori

/social-networking-and-the-quantification-of-emotions/

Tue, 03/27/2012 - 08:37 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I think we can all agree that Bill is indeed a lackey.....is everybody good with that?

 

Tue, 03/27/2012 - 08:47 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Of course but the infighting amongst them is new. As the crumbling 'norm' gives way to chance and real potential for freeing from the Oligarch clutches, the aware ones are getting to think outside this framework. The machine age coming to end.

Tue, 03/27/2012 - 08:51 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Skynet will not be pleased to hear that.

 

Tue, 03/27/2012 - 09:23 | Link to Comment CPL
CPL's picture

<high five>

 

Bill Gross can, does and will eat a bag of dicks on command by his betters.

Tue, 03/27/2012 - 09:28 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Ok, now this 'bag'... does he suck on the bag or the dicks in it? Please explain further.

Tue, 03/27/2012 - 11:01 | Link to Comment CPL
CPL's picture

Either way we could sell tickets to the showcase.

Tue, 03/27/2012 - 08:34 | Link to Comment francis_sawyer
francis_sawyer's picture

<==== A guy managing a trillion dollars "talking his book"

<=== Some bald headed ivory tower dude operating a science experiment with a "Ctrl+P" button

~~~

Vote: regarding the statement..."Gross is talking his book"

Tue, 03/27/2012 - 10:19 | Link to Comment topshelfstuff
topshelfstuff's picture

Just want to add that I see PIMCO as the company given the most TV air-time [ Talking their Book ]. I don't think a day goes by w/o seeing, aside from Bill Gross, others from PIMCO, often on both Bloomberg and CNBC. The below three the most well known, and I think could be included in the PIMCO/TalkingBook/Touts category

Mohamed A. El-Erian
Tony Crescenzi
Neel T. Kashkari

Tue, 03/27/2012 - 11:43 | Link to Comment Bob Sacamano
Bob Sacamano's picture

Yes he talks his book.  But so does everyone else.  Even those on this site (e.g., those who see gold and silver as the answer likely own gold and silver). Not exactly shocking nor irrational.  Is it reasonable to expect Gross to talk opposite his book? 

Tue, 03/27/2012 - 08:35 | Link to Comment I think I need ...
I think I need to buy a gun's picture

quite honestly he can go fuck himself to with El Errian talking that repression shit,,,,,whats his escape plan Costa Rico?

Tue, 03/27/2012 - 08:39 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

For all we know he was planning to exactly that.

 

Tue, 03/27/2012 - 08:42 | Link to Comment knukles
knukles's picture

Bill Gross... Financial Prepper

Timely leadership... when do they start feasting upon themselves?

Tue, 03/27/2012 - 09:04 | Link to Comment Rahm
Rahm's picture

Gross a terrorist?  Who'd a thunk it!

Tue, 03/27/2012 - 09:12 | Link to Comment jekyll island
jekyll island's picture

That is actually a good idea.  Being able to diversify geopolitically is something only a few will be able to do.  I would favor Belize myself. 

Tue, 03/27/2012 - 15:01 | Link to Comment icanhasbailout
icanhasbailout's picture

Talking his book? Maybe. But that's just another way of saying "putting his money where his mouth is", like Ron Paul being invested in gold and gold mining stocks. Isn't it more credible rather than less, if his position reflects his public statements?

Tue, 03/27/2012 - 16:43 | Link to Comment MiddletonRobert3
MiddletonRobert3's picture

my roomate's sister makes $85 hourly on the computer. She has been fired from work for 6 months but last month her paycheck was $16158 just working on the computer for a few hours. Read more here .....  http://lazyCash9.com

Tue, 03/27/2012 - 08:31 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

futures faded pretty hard this AM -http://hedge.ly/GTT9LX

Tue, 03/27/2012 - 09:22 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

this is one sporadic ZH reader who concurs.

Also, Bob Doll of Blackrock, the consummate Team 44 fixed income advisor ('insider') stated yesterday to overweight equites versus Treasuries in this present environment.

The 'ramp' is on .....

.... oh what webs we weave when we practice to decieve ....

.... no man is an island ..... so do not ask for whom the bell tolls ... it tolls for thee ....

 

Tue, 03/27/2012 - 08:25 | Link to Comment Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

The writing's been on the wall. We have to see how this monstrosity metastasises.

Tue, 03/27/2012 - 08:31 | Link to Comment bigdumbnugly
bigdumbnugly's picture

how it what?

Tue, 03/27/2012 - 09:14 | Link to Comment jekyll island
jekyll island's picture

Metastasis, or metastatic disease (sometimes abbreviated mets), is the spread of a disease from one organ or part to another non-adjacent organ or part.[1][2] It was previously thought that only malignant tumor cells and infections have the capacity to metastasize; however, this is being reconsidered due to new research.[3] The word metastasis means "displacement" in Greek, from ????, meta, "next", and ??????, stasis, "placement". The plural is metastases.

Tue, 03/27/2012 - 08:41 | Link to Comment francis_sawyer
francis_sawyer's picture

You know it's gone full retard when the $$ you stuffed under your mattress isn't safe anymore... I'll know ARMAGEDDON has finally arrived when the strippers won't walk over my way to retrieve bills of any demonination...

Tue, 03/27/2012 - 08:48 | Link to Comment Taterboy
Taterboy's picture

I put pre 1965 silver coins in the strippers' G-strings but they keep falling on the floor.

Tue, 03/27/2012 - 09:00 | Link to Comment cossack55
cossack55's picture

Use $2 Silver Certificates or $2 United States Notes. 

Tue, 03/27/2012 - 12:21 | Link to Comment FEDbuster
FEDbuster's picture

Soon strips of beef jerkey will be more welcome in g-strings than FRNs.

Tue, 03/27/2012 - 13:10 | Link to Comment knukles
knukles's picture

That's just wrong.

Tue, 03/27/2012 - 09:28 | Link to Comment bigdumbnugly
bigdumbnugly's picture

u gotta tuck em in tater  :)

Tue, 03/27/2012 - 10:20 | Link to Comment Grinder74
Grinder74's picture

The coins or the G-strings?

Tue, 03/27/2012 - 09:05 | Link to Comment blindfaith
blindfaith's picture

 

 

what a great wway to put it...funny.

There is a new song out on progressive radio. "You already know... the end".  Boy it made me near cry to hear it...the American dream is dead.

Tue, 03/27/2012 - 09:08 | Link to Comment cossack55
cossack55's picture

Is it not funny how many dreams morph into nightmares.

Tue, 03/27/2012 - 08:27 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

As predictedhere on 0hedge....the busted state and federal pension systems are making a grab for private 401K's.

Now I know the end is near.

http://www.nytimes.com/2012/03/27/business/ideas-on-company-pensions-include-turning-to-states.html?_r=1&ref=business

Tue, 03/27/2012 - 08:36 | Link to Comment Global Hunter
Global Hunter's picture

are the sheep getting leary yet i wonder...

Tue, 03/27/2012 - 08:47 | Link to Comment Manthong
Manthong's picture

Thanks for that. From that NYT piece:..

“Workers can watch their benefits grow each year as an account balance, but the assets that secure the benefits are held in a pooled trust.”

Great idea… it will be so nice to watch “account balances” grow after control is transferred to the government and they diminish in value (purchasing power)

.

Tue, 03/27/2012 - 08:58 | Link to Comment Global Hunter
Global Hunter's picture

pity the poor guy who upon seeing his account balance growing (despite the diminished purchasing power as you rightly point out) decides to withdraw a little too much cash and gets either hit with crippling fees/commission and or a visit from a DHS swat team.

Tue, 03/27/2012 - 09:12 | Link to Comment PanGlossius
PanGlossius's picture

Semi-conscious, I just laughed at this then got that sick feeling in the pit of my stomach. It should be a joke, especially the DHS part. 

Tue, 03/27/2012 - 09:38 | Link to Comment chunga
chunga's picture

DHS is real busy right now.

Busy fighting off a dangerous "hair-straightener" insurgency. Keeping America safe...lol.

Raid for counterfeit search 'a misunderstanding,' resident says

"About 10 local and federal law enforcement officials search home in Laguna Niguel for fake hair irons."

 

Tue, 03/27/2012 - 08:58 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

I think the dual meaning of the word "trust" has become paradoxical.  Maybe it's just me, tho'.

Tue, 03/27/2012 - 11:20 | Link to Comment Winston Churchill
Winston Churchill's picture

Invested in worthless UST's,just like the SS "trust" no doubt.

Tue, 03/27/2012 - 09:09 | Link to Comment Mercury
Mercury's picture

As predicted here on 0hedge....the busted state and federal pension systems are making a grab for private 401K's. 

http://www.nytimes.com/2012/03/27/business/ideas-on-company-pensions-include-turning-to-states.html?_r=1&ref=business

 On the plus side, quarter-end window  dressing would be a snap as the Fed would know exactly where to apply targeted QE...and just think how much more efficient some things would be if there were only 50 clients in the whole country to compete for.

Tue, 03/27/2012 - 09:11 | Link to Comment chubbar
chubbar's picture

duplicate of post below.

Tue, 03/27/2012 - 08:27 | Link to Comment Mercury
Mercury's picture

Bill's about two letters away from going all-in gold and food.

Tue, 03/27/2012 - 08:31 | Link to Comment francis_sawyer
francis_sawyer's picture

Nickles bitchez!

Tue, 03/27/2012 - 08:59 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

Esp. the 1942-45 variety.  ;)

Tue, 03/27/2012 - 09:19 | Link to Comment francis_sawyer
francis_sawyer's picture

Sweet...

I've been exchanging, on average, about $20 a week at the bank for nickle rolls for about the past 30 months (plus ~ always ask for nickles in 'change' at the grocery store, or a single $2 roll if they have it)... Until about 6 months ago, they were a wide variety of dates, but the last 6 months it's morphed to mostly shiny new stuff (at the banks)...

The make-up hasn't altered much in the change you get at supermarkets or liquor stores... I'd still get... maybe... one '42-'45 nickle in there with every $100 worth of face nickles... Nowadays, it sucks worse because of those damn COINSTAR machines... They have the people conditioned now to bring their UNWANTED couch money, put it in a machine, & get crisp new FRN's... Bleech!

Tue, 03/27/2012 - 11:00 | Link to Comment oddjob
oddjob's picture

Somebody's creaming the Junk Silver at coinstar. Funny they don't mention it in their 10-K, too dumb or just quiet?

Tue, 03/27/2012 - 08:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Food......crap.....I knew I forget something.

 

 

 

Tue, 03/27/2012 - 08:33 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Well Getzee, you can always consume colloidaly! ;-)

ori

Tue, 03/27/2012 - 08:29 | Link to Comment ciaoant1
ciaoant1's picture

Leveraging/deleveraging: “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”

http://whataboutmarx.blogspot.com/2012/01/leveragingdeleveraging-give-me...

Tue, 03/27/2012 - 08:30 | Link to Comment maxmad
maxmad's picture

Agreed... Except for housing... Housing will continue to collapse... In fact accelerate to the downside... Housing drops another 50% during hyperinflation.... But don't worry gas will be $12/gallon

Tue, 03/27/2012 - 09:03 | Link to Comment buckethead
buckethead's picture

It's all about equilibrium.

Tue, 03/27/2012 - 08:31 | Link to Comment DrewJackson
DrewJackson's picture

Gross may be nice to have as a cell mate at a FEMA camp.

Tue, 03/27/2012 - 08:48 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

here's where the spammer's post would be if he wasn't still jumping strings to spam his "website"

Tue, 03/27/2012 - 09:00 | Link to Comment Schmuck Raker
Schmuck Raker's picture
Guy named Rebenga, man. Emilio Rebenga.

Rebenga?

- I know that name.
- Yeah?

- He's political.
- Yeah.


Well, he's coming in here today.

==============================================
You tell your guys in Miami, your friend...

...it'd be a pleasure.


I'd kill a Communist for fun...


...but for a green card,

I gonna carve him up real nice.
[sorry I'm late, Slewie]

Tue, 03/27/2012 - 08:32 | Link to Comment maxmad
maxmad's picture

Agreed... Except for housing... Housing will continue to collapse... In fact accelerate to the downside... Housing drops another 50% during hyperinflation.... But don't worry gas will be $12/gallon

Tue, 03/27/2012 - 09:05 | Link to Comment buckethead
buckethead's picture

Balanced Books, Bithcez.

Tue, 03/27/2012 - 08:33 | Link to Comment Global Hunter
Global Hunter's picture

Escape repression, like Michigan's Dept of Natural Resources new Invasive Species Order that allows the state to raid any farm in the state and shoot any pigs that don't meat corporate industrial standards, oh and the farmer can face large fines and up to 4 years in prison for keeping a pig with the wrong hair colour.

http://www.infowars.com/insane-michigan-government-announces-plan-to-destroy-ranch-livestock-based-on-hair-color-and-arrest-hundreds-of-ranchers-as-felons/

Tue, 03/27/2012 - 09:04 | Link to Comment cossack55
cossack55's picture

Must destroy small farmers in order for Monsanto/Cargill/Archer-Daniels to control 100% of food production.  Rule number 1 in population control:

1. Control all food/water production/distribution

Tue, 03/27/2012 - 09:18 | Link to Comment Global Hunter
Global Hunter's picture

A family of Ukrainians were like second parents to me growing up, they came to North America just after WW2 and I feel like I'm watching the second coming of the Holomador in slow motion.  I find it very painful to read about real time accounts of the systems being put into place to carry it out.

Tue, 03/27/2012 - 09:31 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

GlobalHunter ..... most here do not know what you said re: 30s Ukraine ... it is clearcut ... .millions (not hundreds, not thousands, the debate is on the order of millions to tens of millions .... because statistics were so messed with in Soviet and due to WW2 depopulation) were conciously starved to death to cull the middle class/farmer....... that is too dark to contemplate

Walter Duranty .....NYTimes Pultizer prize winner (the Hanoi Jane Fonda of 'jornolism') ...... you know what I mean ........

Tue, 03/27/2012 - 09:39 | Link to Comment Global Hunter
Global Hunter's picture

5 to 10 million systematically starved to death over the course of one year to crush the indepedent spirit of Ukrainian farmers and nationalists.  As you said the NYT at the time covered up and its not something that's discussed much by state schools...just sayin

Tue, 03/27/2012 - 09:16 | Link to Comment Money 4 Nothing
Money 4 Nothing's picture

Would Nancy Pelosi fall under that new mandate? Just askin...

Tue, 03/27/2012 - 09:18 | Link to Comment Jim in MN
Jim in MN's picture

Well, we can't tolerate Gingers.  Even porcine ones.

Tue, 03/27/2012 - 13:44 | Link to Comment Jena
Jena's picture

As a redhead with freckles, I take exception to that, Jim.

Tue, 03/27/2012 - 08:35 | Link to Comment Savonarola
Savonarola's picture

Billy-boy,   There's good news and bad news.

The good news is that there is a general election coming.

The bad news is that nothing will change no matter who is elected.

Tue, 03/27/2012 - 08:36 | Link to Comment Seasmoke
Seasmoke's picture

i feel like i am watching the WWE , when Gross starts speaking

Tue, 03/27/2012 - 08:41 | Link to Comment Widowmaker
Widowmaker's picture

Dear bill,

No rule of law, no normal, no recovery.

Fuck the banks, fraud leverage and incorporated racketeering.

There is no escape in this fabricated environment of fraud and synthetic markets.

Keep your hot air.

Tue, 03/27/2012 - 13:41 | Link to Comment sgt_doom
Tue, 03/27/2012 - 08:38 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

what did he do with the 'front-run the FED w/ leveraged (not "levered") MBS'?

stick them up his pedantic, moronic ass?

Tue, 03/27/2012 - 08:43 | Link to Comment fonzannoon
fonzannoon's picture

He said the "bunker portfolio" is still off down the road. So if you put anything into what he says then this goes on and on.

Tue, 03/27/2012 - 08:45 | Link to Comment Ricky Bobby
Ricky Bobby's picture

Great Escape Hah - Papillon was the greatest Steve McQueen movie ever.

Tue, 03/27/2012 - 08:50 | Link to Comment Watauga
Watauga's picture

No way.  BULLITT.

Tue, 03/27/2012 - 08:53 | Link to Comment francis_sawyer
francis_sawyer's picture

+1 Bullitt

Tue, 03/27/2012 - 11:49 | Link to Comment FreeNewEnergy
FreeNewEnergy's picture

A vote here for "The Getaway." Ali McGraw and a super hot bitchin' Sally Struthers!

 

Full, uncut version on youtube:

http://www.youtube.com/watch?v=8hQqEfzgQY8&feature=related

Punch it, baby!

Tue, 03/27/2012 - 08:51 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

dustinH did make that pretty damned good!

Tue, 03/27/2012 - 08:53 | Link to Comment francis_sawyer
francis_sawyer's picture

Dustin's best work was Midnight Cowboy

Tue, 03/27/2012 - 09:06 | Link to Comment cossack55
cossack55's picture

"Little Big Man"

Tue, 03/27/2012 - 09:29 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Without a doubt "Tootsie" was his tour de force.

Tue, 03/27/2012 - 14:45 | Link to Comment DosZap
DosZap's picture

"Marathon Man"

IS it SAFE?

Tue, 03/27/2012 - 10:27 | Link to Comment LouisDega
LouisDega's picture

Without a doubt, Papillion!! I am Louis Dega .  I have spoken

Tue, 03/27/2012 - 11:07 | Link to Comment Bam_Man
Bam_Man's picture

Marathon Man.

"Is it safe?"

Tue, 03/27/2012 - 09:34 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

The Sand Pebbles ..... ranks with Lawrence of Arabia & Ben-Hur in my humble estimation .....

Tue, 03/27/2012 - 10:52 | Link to Comment OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

Have to agree. When I was a kid I wanted to be Steve McQueen. In between wanting to be Lawrence of Arabia and James Bond. Simpler times.

Tue, 03/27/2012 - 08:47 | Link to Comment disabledvet
disabledvet's picture

BRING IT! I'M COMIN' FOR YOU TOO BILL GROSS!!!
http://www.youtube.com/watch?feature=player_detailpage&v=2OlAx4Dok38

Tue, 03/27/2012 - 08:52 | Link to Comment Global Punter
Global Punter's picture

Gross actively runs a quarter of a trillion, how much does Bob run? Why the comparison?

Tue, 03/27/2012 - 08:56 | Link to Comment BLOTTO
BLOTTO's picture

I think the game was over as soon as 'they' got power...

 

Tue, 03/27/2012 - 09:06 | Link to Comment Jim in MN
Jim in MN's picture

 

 

Dear Bill:

 

RESIGN.  Place PIMCO's assets in TIPS T-bills for the duration (no churn!  Verboten!) and hang it up.

You are right.  It is over.  'It' being free markets.

Go to Tahiti or the south of France.

You did good, you deserve it, and why spend the next decade bitching about Japanification?

Sincerely,

Just Another ZH Commenter

Tue, 03/27/2012 - 09:07 | Link to Comment Sean7k
Sean7k's picture

Wow,

Bill Gross finally recognizes the bankruptcy of finance as a vehicle for real production of goods and services to create real wealth? That there is a point where leverage becomes finite? Yet, his solution is one mired in financial instruments?

Tell you what Bill, if people take their wealth (savings and investment) and use it to create real goods and services that the world wants, on a local/regional/international level, telling the banks where to stick their paper, we will have positive wealth creation.

The days of growing wealth, by sitting behind your desk and taking advantage of leveraging opportunities is increasingly the realm of banks. Even hedge funds are failing as they lack the access to market movements banks have from a captured government and the direction of all central bankers.

Capitalits and investors need to turn outward and discover the opportunities that await outside the normal financial channels. The new paradigm is to exclude the bankers, to ignore the government and firewall against their repression and theft as you build new sources for wealth. Then this wealth must be held in real assets that can be protected from regulatory capture. 

Our hope lies in the isolation of the financial/taxing regime to be consumed by their deriviative black hole. The monster of leverage must be allowed to collapse into itself. 

Tue, 03/27/2012 - 09:15 | Link to Comment Dr. Engali
Dr. Engali's picture

You are right in your thesis but you are adressing it to the wrong person. Bill's job,what he is hired to do, is to grow other people's money with the vehicles at is disposal. The "capitalists and investors" that you speek of are the shareholders and I'm willing to bet that they aren't about to take their funds and personally look for new investmnt ideas.

Tue, 03/27/2012 - 09:20 | Link to Comment Global Hunter
Global Hunter's picture

Validity to both your posts, I'm Fence Sittin Bitchez!!!

Tue, 03/27/2012 - 09:25 | Link to Comment Sean7k
Sean7k's picture

Which is why they will eventually lose it. 

Tue, 03/27/2012 - 09:56 | Link to Comment grid-b-gone
grid-b-gone's picture

Individuals benefit from deleveraging before investing in many cases. Own necessities outright.

Real estate along public transportation routes will hold value well. If you can eliminate a vehicle, you jettison gas, insurance, maintenance, and registration with it.

Energy-saving products have faster ROI paybacks as commodity inflation increases.

Expense reduction and avoidance can have a greater payback than investments. No fund manager is ever going to tell you that.  

Tue, 03/27/2012 - 09:17 | Link to Comment Sathington Willougby
Sathington Willougby's picture

 

Dear Powers that Be,

I'm not ready yet to revolt.  My life is too good to waste on freedom, free will and individuality.  After all my flat screen tv is very nice.  Go ahead with your constant surveillance and guilty until proven innocent judicial perversions.  Just in case you don't beleive me, watch me vote for Romney or Obama in the next term.  Then you'll be assured that your riskless profits are indeed that.  Be sure to keep the military engaged overseas in pointless wars so that the dogs that bark here have no bite.  Any sort of discomfort to me would be intolerable.

Sincerely your slave,

Pathetic American Chump 

Tue, 03/27/2012 - 09:19 | Link to Comment Jim in MN
Jim in MN's picture

 

 

PS Also I was working on my hole to China but my little plastic shovel bent and that made me upset.  It's a Hello Kitty shovel.

So prepping will have to wait.  Maybe the government will give me a kit.

Tue, 03/27/2012 - 09:19 | Link to Comment junkyardjack
junkyardjack's picture

What happens when the world's largest bond fund transfers to stocks? Bullish

Tue, 03/27/2012 - 09:32 | Link to Comment casey13
casey13's picture

This is what Martin Armstrong has been saying. Once interest rates start to move up or even stop going down and inflation starts to rise there will be a migration from bonds to stocks and commodities as the only way to protect peoples wealth from a loss of purchasing power. A mass movement from public to private assets. Slow at first but then accelerating.   

Tue, 03/27/2012 - 09:38 | Link to Comment unununium
unununium's picture

"Safe carry” is an essential element of capitalism – that is investors earning something more than a Treasury bill. If and when we cannot, then the system implodes"

Entitlement mentality. Poor William.

Tue, 03/27/2012 - 09:48 | Link to Comment wattsnotsaid
wattsnotsaid's picture

Two months ago Gross said to go maximum duration, now it's short duration.  What will it be in two months?    see ZH article in January:  Bill Gross Exposes "The New Paranormal" In Which "The Financial Markets And Global Economies Are At Great Risk" 

What about the MBS that Gross is reportedly buying big time?

I much prefer someone talking his book especially when it's in the hundreds of billions to someone who doesn't believe his advice enought to invest in the recommended products.

Tue, 03/27/2012 - 09:50 | Link to Comment Tom Green Swedish
Tom Green Swedish's picture

Who gives a shit?

Tue, 03/27/2012 - 10:12 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

For effect, Gross should begin to end all of his sentences with, "bitchez".

Tue, 03/27/2012 - 10:14 | Link to Comment spanish inquisition
spanish inquisition's picture

The Fed has 2 mandates to placate the masses, which are crap. Its mission is like every other entity, for the continued growth and survival of the Fed and its private owners. We just read about the circling of the derivitive wagons. I am guessing that these are the insurance policies in case ctrl+p transfer risk to the public does not work. They want to make sure they are left holding the bag (the one with the real assets). Obviously, it is easier to stay in charge with an orderly world default.

So I think we are in the big skim phase to push money to the private owners. And I think it works like this. If I print $1000 and put it in my pocket, does it create inflation? It might create the expectation of inflation, but that would fade as a few years go by. Now you can head out and buy assets at low prices, I guess the derivitives are included in this.

The Fed does not manage inflation, it creates inflation. As money flows through the system, inflation increases. The money is made on the differential in inflation in the difference of purchasing power by being the first person to get printed money v the last. This is the only real tool in the toolbag. The rest is payoffs and rewriting rules to maintain the structure. Eventually to maintain the structure, you need to keep paying off more people (economists, politicians, peripheral wall street players) that too much "early" hot money creates growth that outpaces the flow to the "last". 

This is a bit rambling and disjointed, but its close.... Just need to strip it down and see what is left

Tue, 03/27/2012 - 10:32 | Link to Comment daxtonbrown
daxtonbrown's picture

About the only way for the little guy to survive and at least break even as the global elfare Ponnzi collapses is to go prepper - but that means at all levels. Not just filling the garage with groceries, but becoming a financial prepper as well, which means getting back to basics very near to what Gross is suggesting. Financially it boils down to "Show Me The Money", stay away from it if it isn't showing a dividend or in a solid commodity or necessary manufacture - none of this paper profits bling. Gold is just one part of a total prepper mentality. Maybe grow your garden, do your own auto mechanics, anything to deleverage and stay independent.

The deficits are so fucking huge that at some point these governments have to start confiscating wealth (which is the definition of inflation). The only way to stick it to the man is to get off the rollercoaster and Go Galt. http://www.futurnamics.com/goinggalt.php

Tue, 03/27/2012 - 10:52 | Link to Comment tactical sanity
tactical sanity's picture

Gross has finally seen the light. The great global debt and derivative bubbles blowing and the only two choices are to print to reflate or not and have a massive depression. The powers that be will always chose printing as they fear the actions of the hoard with pitchforks coming for them. The debasing of currencies is the true definition of inflation...and gold/silver will be the winners. Gross is finally a gold bull and Pimco is buying gold to hold.

 

 

Tue, 03/27/2012 - 10:58 | Link to Comment AchtungAffen
AchtungAffen's picture

It was about time for real stuff to beat paper. The fantasy lasted for way too long.

Tue, 03/27/2012 - 11:07 | Link to Comment Olympia
Olympia's picture

The over-profits of the shark loans in the USA not only did not turn their dollars into inflationary money, but also they were multiplied and exported abroad in the form of “investments”. The illegally “increased" dollars of the internal USA economy become tons of “investments” abroad. FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing” ...the first state that burdened the international economy with its “breathing” ... and this is where everything started ...this is where the current shabbiness started, Loan sharks that are international today and “hide” behind the vague term of “Markets” are in fact the old loan sharks of the American market. They by controlling the USA monetary system “pumped in air” constantly in order to make profit from the USA “breathing”.

 

http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html

 

 

Authored by PANAGIOTIS TRAIANOU

Tue, 03/27/2012 - 12:38 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

... well Billy is out there ....beyond Orion, playing on a ''their'' course alright http://www.youtube.com/watch?v=hJPg1Fivmqg Lol.

''They'' came down on Labor's good green fertile grass and tore up the land to build a prison mine. Labor has been tunneling for the great escape ever since ''their'' new ''world order'' carved out the market and marked returns to favor ''their Club'' on their course, of course. Lol

                               ...but that course is wired for Bear

             (or is it Goffer?http://www.youtube.com/watch?v=U4xuZMpmXtc&feature=related )    

 ....what Chairsatan and the Suicide Vampire Squid of the Great Wal Mart of China call Tunnel Rats

            ...that have dug in and are now divested from the fallen bastards derivative black hole. 

                            Billy Baroo will sink the shot on ''their course to HELL'' 

                                                        BUT!

                                       That does not mean ''Winning'' LOL

                               http://www.youtube.com/watch?v=yps3qCbo0F0

Tue, 03/27/2012 - 12:38 | Link to Comment Diogenes
Diogenes's picture

"Although there were accidents along the way such as the S&L crisis, Continental Bank, LTCM, Mexico, Asia in the late 1990s, the Dot-coms, and ultimately global subprime ownership, financial institutions and market participants learned that policymakers would support the system, and most individual participants, by extending credit, lowering interest rates, expanding deficits, and deregulating in order to keep economies ticking."

Those weren't accidents.

Tue, 03/27/2012 - 15:00 | Link to Comment xcehn
xcehn's picture

"Another belter from Jeremy Warner in the Telegraph today. Jezzer thinks the UK economy is ‘looking up’. Obviously, he needs to look up more figures. See what you think. Not that I want to bias you or anything, but this was my response in the thread:

‘The US provides an encouraging template. Typically about six months to a year ahead of us in the economic cycle, the US seems now to be quite close to self-sustaining recovery’.
The naivety of this statement is astonishing. Man in White House have election to win, Jeremy. Bernanke in Fed Reserve offer note of caution. US housing has fallen in value for the third month in a row. Now hear this: the US has NEVER IN HISTORY recovered from recession without a recovery in property values. Please stop treating this as just another cycle, and see it for what it is – a notional money/QE/Zirp/CDO disaster now almost upon us. The economy of the UK is indeed looking up: to Heaven, to which it prays God help us”.

http://hat4uk.wordpress.com/2012/03/27/welcome-to-the-financial-pages-pl...

Tue, 03/27/2012 - 15:05 | Link to Comment johnjb32
johnjb32's picture

-- Indeed it is. Having the hard, physical goods, the community, the food and tangible resources is all that matters now. -- Michael C. Ruppert

 

http://www.collapsenet.com/154.html

Tue, 03/27/2012 - 15:27 | Link to Comment xcehn
xcehn's picture

"10 Reasons Why The Reign Of The Dollar As The World Reserve Currency Is About To Come To An End"

http://theeconomiccollapseblog.com/archives/10-reasons-why-the-reign-of-...

Tue, 03/27/2012 - 16:32 | Link to Comment forrestdweller
forrestdweller's picture

this man has interesting thoughts and opinions. a true intellectual.

but most of it refers to the theories of kondratieff.

it is now winter. a credit crunch, which has hardly started.

what do some animals do during winter.? they create a supply that is needed to survive, and sleep, untill the winter is over.

i would advise this. but the quenstion is; what is a the supply you need to survive?

 

Tue, 03/27/2012 - 16:34 | Link to Comment forrestdweller
forrestdweller's picture

to begin, a collection of good wines...

Tue, 03/27/2012 - 18:51 | Link to Comment tricky rick
tricky rick's picture

Cheese... learn the fine art of making cheese.

print off your Fidelity account so when the screens go blank you have proof you OWN something.

finally, 410 or 12 gauge, hum...  410s easier to use ...  but 12 gauge a bigger punch.

Think I'll send Bill a note and ask him what he recommends for the best HEDGE to what's coming...  to investment fellows such as he...

 

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