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Bill Gross:"Buy Real Assets... Gold... A House!"

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Fri, 09/14/2012 - 10:28 | 2794633 Roland99
Roland99's picture

best yet: A house made out of gold!

Fri, 09/14/2012 - 10:28 | 2794640 tocointhephrase
tocointhephrase's picture

Yeah but it would be gone by the morning!

Fri, 09/14/2012 - 10:32 | 2794648 GetZeeGold
GetZeeGold's picture



Bill....the Huns are on line 2.


.....and Chuck Munger is still on hold.


Fri, 09/14/2012 - 10:35 | 2794678 Precious
Precious's picture

Buy a comfortable lawn chair so you can see the banking system burn the country down.

Fri, 09/14/2012 - 10:35 | 2794681 Dalago
Dalago's picture


Fri, 09/14/2012 - 10:38 | 2794698 MillionDollarBonus_
MillionDollarBonus_'s picture

WARNING … Bill Gross has endured serious losses over the last 5 years, and is not a credible investor.

SHOCKER: over the last 5 years, Bill Gross has lost millions of dollars shorting treasuries, along with Peter Schiff and Jim Rogers. This demonstrates a serious deficiency in market knowledge and ability to manage risk. Inexperienced investors are advised to view this advice with caution and skepticism 

Fri, 09/14/2012 - 10:39 | 2794712 Bay of Pigs
Bay of Pigs's picture


Fri, 09/14/2012 - 10:41 | 2794742 Dalago
Dalago's picture

But how much have they gained buy being in physical assets...?


Why would anyone buy a house?!  The inflation would kill the money to pay for the mortgage.

Fri, 09/14/2012 - 10:49 | 2794805 mrdenis
mrdenis's picture

In New Jersey property taxes alone will kill ya'.....our politicians think a "just 2 1/2 % increase on the already highest in the nations taxes is like a tax cut ,even though you can't sell your home for assesed value ! 



Fri, 09/14/2012 - 11:19 | 2795022 Jay Gould Esq.
Jay Gould Esq.'s picture

"Think 7% unemployment..."

Ergo, think 60% labor force participation rate, for that is the only way the reported unemployment rate can decline to such a figure.

Fri, 09/14/2012 - 16:08 | 2796787 Kobe Beef
Kobe Beef's picture

Exactly. And as California and all the other Brokeback Parasite States go under, getting their greedy little paws on your property taxes is all they got left.

Plus, there's that whole Agenda 21, sustainable development, land restriction, property seizure thing going on.

Buy a house in the USSA? You're painting a bulls-eye on your forehead.

Fri, 09/14/2012 - 10:52 | 2794831 All_Is_Well
All_Is_Well's picture

No man..... You BUY the house, ,,with FRNs.....

Fri, 09/14/2012 - 10:54 | 2794845 analyzer_66
analyzer_66's picture

not too mention food, utils, and the cost of children

Fri, 09/14/2012 - 11:12 | 2794963 SGS
Fri, 09/14/2012 - 11:15 | 2794959 jekyll island
jekyll island's picture

Buy the house and take out a loan.  Pay off the loan with inflated dollars down the road.  Better yet, buy 1000 oz of silver at the same time you buy the house, use silver to pay off the house, get it for $35,000 you paid today.  Your mortgage contract is priced in dollars.  If, oops, when silver goes parabolic against the dollar you can use silver to complete your purchase.  That's how inflation erodes the FRN$.  Have to start thinking about houses priced in ounces of gold or silver.  

Fri, 09/14/2012 - 11:31 | 2795116 mirac
mirac's picture

Agree with what you say regarding the "house" idea, but Gross's theory will be proven wrong.  Housing is going to collapse with the system.  These "coastal people" tend to be nuts.  Wish he would just shut up.  Very insecure!  Seems to need the attention.  The silver part I am not sure but it has had a heck of a rally.  So are the 10 yr rates now...

Fri, 09/14/2012 - 11:33 | 2795121 aerojet
aerojet's picture

If only--since you can't use silver as a currency, you have to convert the silver to something else--dollars, probably, and then do what you said.  The whole thing is money changers and middle men taking their cut, which is a huge part of the problem.  If only we could pay with precious metals, the dollar would have to be competitive, but under present laws, it doesn't have to be.  The masters of this game have been very clever at backing us all into the corner they want us in.

Fri, 09/14/2012 - 15:16 | 2796493 Hayabusa
Hayabusa's picture

aerojet...  you cant be serious.  any homeowner would be willing to take 50k for their 100k house and the rest in gold or silver on the side.  this would lower the valuation and property taxes and screw the taxman or system think outside the box man, outside the box.

Fri, 09/14/2012 - 17:48 | 2797155 Kobe Beef
Kobe Beef's picture

You're still stuck in a house in an increasingly dysfunctional, increasingly Totalitarian State. I'm sure there's a great scheme to get North Korean real estate too, but I'm not buying.

Just buy the metals and stay mobile. Like, expatriate, mobile. Like, guerilla war, mobile. Mobility is your friend.

Fri, 09/14/2012 - 10:40 | 2794714 TwoShortPlanks
TwoShortPlanks's picture

And yours with even more skepticism.

Fri, 09/14/2012 - 10:47 | 2794784 larz
larz's picture

wow bonus time we need an analyst of your caliber at my negative return fund

Fri, 09/14/2012 - 11:41 | 2795173 asteroids
asteroids's picture

Wake me up when PIMCO has a gold fund that is run by Gross.

Fri, 09/14/2012 - 10:40 | 2794722 rqb1
rqb1's picture

come on mdb, you can do better than that.

Fri, 09/14/2012 - 10:41 | 2794739 NewWorldOrange
NewWorldOrange's picture

The only reality left is that criminals and traitors have taken control of America and are hellbent on destroying it, wittingly or not, and we MUST STOP THEM SOON.

On Martch 15, 2013, march on your city councils, state capitals, DC. Whatever you can manage. At 8am your time, just grab your family and walk into the streets. Refuse to disband or go home until the city councils oblige, the local police oblige, the state capitals oblige, the national guardsmen and armed forces oblige and follow their oaths, and TPTB in DC, including every Congressman, top administration officials, the DOJ heirarchy, have all been arrested and are awaiting trial.

Let the revolution begin. Demands: TPTB are tried for treason against their Oaths to support and defend the Constitution, for cronyism, rampant bribery and corruption, lies, malfeasance, and plenty of other charges that not only makes them unfit to serve, but TRAITORS and CRIMINALS and THUGS.

America marches on the Ides of March. 8am local time -- get in the streets. It's our last, best hope. Make this go viral. American Spring.

Fri, 09/14/2012 - 11:49 | 2795221 Renewable Life
Renewable Life's picture

As long as we are back home by 7pm to watch the lakers- heat game on TNT!!! Oh and not to mention, "dancing with the stars" will be in the knock out stages, so as long as this "marching thing" doesn't interrupt that, I'm game!!!

COME ON MAN, American Spring!!!!! Shit like that happens "over there" because the masses of people don't have........let me list them:

Food stamps
Social Security
Section 8 housing
EBT cards
Fast food that's cheap
Pro Sports
Mindless entertainment at the touch of a finger
And Ben Bernanke

We might get our "American Spring", but it won't be in 2013, shit has to get real in America first.......maybe by 2015-2016, and 10-15 trillion more in spending and printing!!

Fri, 09/14/2012 - 16:09 | 2796789 Theosebes Goodfellow
Theosebes Goodfellow's picture

Spot on, RL. If you want revolution in the streets in the USA, cut off all satellite TV, cable TV and drop the tower on local affiliates.

"No American civilization is more than 24 hours away from revolution if you cut off from their idiot boxes."  

~Theosebes Goodfellow

Ya' heard it here first, folks! :-)

Fri, 09/14/2012 - 18:14 | 2797241 Kobe Beef
Kobe Beef's picture

Why does everybody wanna wait until shit gets completely untenable before taking the slightest action whatsoever?

Enough with the excuses. You think George Washington, Thomas Paine, Samuel Adams and all those guys waited to see what the dumb mass of complacent boobs wanted to do first? No they didn't. Lexington and Concord happened way before most Colonists had even made up their minds. Two years into the Revolutionary War and most were still sitting on the fence. Guess they had a barn dance to go to, and that's why we Pledge Allegiance to the Crown still. Not.

"They tell us Sir, that we are weak -- unable to cope with so formidable an adversary. But when shall we be stronger? Will it be the next week, or the next year? Will it be when we are totally disarmed, and when a British guard shall be stationed in every house? Shall we gather strength by irresolution and inaction? Shall we acquire the means of effectual resistance by lying supinely on our backs, and hugging the delusive phantom of hope, until our enemies shall have bound us hand and foot? Sir, we are not weak, if we make a proper use of those means which the God of nature has placed in our power." -- Patrick Henry

OK fine, you're comfy, and you'll wait until you're not. And then it'll be way too late. But never too late for more excuses.

"A general dissolution of principles and manners will more surely overthrow the liberties of America than the whole force of the common enemy. While the people are virtuous they cannot be subdued; but when once they lose their virtue then will be ready to surrender their liberties to the first external or internal invader." -- Samuel Adams, 1779

Surrender to Sloth, then. Conquered by Consumerism. And finally...

"Contemplate the mangled bodies of your countrymen, and then say 'what should be the reward of such sacrifices?' Bid us and our posterity bow the knee, supplicate the friendship and plough, and sow, and reap, to glut the avarice of the men who have let loose on us the dogs of war to riot in our blood and hunt us from the face of the earth? If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom - go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, and may posterity forget that you were our countrymen!" - Samuel Adams, 1776

Fri, 09/14/2012 - 19:49 | 2797526 steve from virginia
steve from virginia's picture


The American Revolution was at the tail end of over sixty five years of war between the colonists, natives, England and France. Segue from warfare to warfare was not a problem.


The last war on American soil ... leaving out Pearl Harbor and 9/11 ... 147 years ago. Yup, complacent.

Sat, 09/15/2012 - 01:24 | 2798107 Kobe Beef
Kobe Beef's picture

Complacency indeed. That's why I read the Founders. Complacent they were not. Their words can still inspire, but we've got to man up and do the work.

I think consumer culture is partly to blame. We've been raised among all these labor-saving devices, and led to believe that easier is better. That easy is intrinsically good. Ease: the false God of Post-productive Consumerism.

Conversely, it's taking on the difficult or downright impossible that makes us Men.



Fri, 09/14/2012 - 10:41 | 2794740 KidHorn
KidHorn's picture

I thought Gross loaded up on MBS on expectation the FED was going to buy it.

Fri, 09/14/2012 - 10:42 | 2794751 TheCanadianAustrian
TheCanadianAustrian's picture

Downvoted because not funny enough.

Fri, 09/14/2012 - 10:45 | 2794771 LongSoupLine
LongSoupLine's picture

I'm with MDB...we should put more stock in people who said "hand over fist" buying of Facebook IPO !

Fri, 09/14/2012 - 10:51 | 2794818 samsara
samsara's picture

You could help us and mention the name of the Multi-Billion Dollar fund you manage?

So we can weigh your credibility vs Gross's.    Or do you get paid just for your DisInformational capabilities?

Fri, 09/14/2012 - 11:12 | 2794962 Stoploss
Stoploss's picture

Im sure Tyler can find the tweet from Gross a month or two back saying the FED was going to buy MBS until the end of time. As Gross was loading up on MBS.


LOL!! Try again.

Fri, 09/14/2012 - 11:51 | 2795233 silvermaister
silvermaister's picture

Hey you RETARD are you still around ?? Buying silver allready ?


Fri, 09/14/2012 - 12:33 | 2795462 Omen IV
Omen IV's picture

Gross - buy houses ?

gross already owns mortgage bonds and now probably more coming his way - these houses are already moving to obsolence given lack of discretionary income / approval restrictions and gasoline - surburban locations cannot be supported on $5.00 plus per gallon - this stock of housing is an avalanche on the flip - to whom?  

Fri, 09/14/2012 - 13:35 | 2795796 Stares straight...
Stares straight ahead's picture

"Inexperienced investors are advised to view this advice with caution and skepticism"

...And experienced investors are advised to view this advice with accordance and alacrity!

Fri, 09/14/2012 - 10:37 | 2794683 Pladizow
Pladizow's picture

 "Gold is a treasure, and he who possesses it does all he wishes to in this world ........" – Christopher Columbus

Fri, 09/14/2012 - 10:36 | 2794690 TwoShortPlanks
TwoShortPlanks's picture

QE3 buzz is gonna wear-off real fucking fast. I gotta bad feeling already.

Fri, 09/14/2012 - 10:53 | 2794839 Rainman
Rainman's picture

Why are you so cynical about Chairsatan's predictive talents ??

".....the impact on the broader markets of the problems in the subprime markets seems likely to be contained."

       Bernank to Congress....March 2007

Fri, 09/14/2012 - 11:02 | 2794910 e-man
e-man's picture

LOL! Just like the broader impact of printing $85 B per month is not likely to cause any inflation.  I'm sure $20 per gal gas will be blamed on evil speculators that need to be taxed.

Fri, 09/14/2012 - 14:24 | 2796157 MillionDollarBoner_
MillionDollarBoner_'s picture

I just brimmed out my gas tank in expectation of a price spike.

Does that make me an "evil speculator"?

Fri, 09/14/2012 - 15:12 | 2796458 Ying-Yang
Ying-Yang's picture

perhaps an evil brimmer

or even a bedeviled rimmer

Fri, 09/14/2012 - 10:54 | 2794847 Roland99
Roland99's picture

MBSes are already down 19/32.


Fri, 09/14/2012 - 11:22 | 2795049 jekyll island
jekyll island's picture

Of course the QE buzz will wear off, you obviously have been paying attention.  What this means is really bullish for PMs.  And inflation.  The end.  



Fri, 09/14/2012 - 14:22 | 2796143 MillionDollarBoner_
MillionDollarBoner_'s picture

That'll be the comedown. Its a real bummer!

Fri, 09/14/2012 - 11:46 | 2795208 Chuck Walla
Chuck Walla's picture

Bill....the Huns are on line 2.

.....and Chuck Munger is still on hold.


Cripes! Milk just flew out my nose!


Fri, 09/14/2012 - 10:50 | 2794809 Roland99
Roland99's picture

not if I secure it like an Embassy.



oh wait....

Fri, 09/14/2012 - 10:50 | 2794810 Sam Clemons
Sam Clemons's picture

Invest in Lead, the other precious metal.

Fri, 09/14/2012 - 11:12 | 2794961 johnQpublic
johnQpublic's picture




eat more chicken...if'n you can afford it


this cow is comin home to a gold house bitchez

Fri, 09/14/2012 - 10:29 | 2794635 Abraxas
Abraxas's picture

Tangible, baby!

Fri, 09/14/2012 - 10:28 | 2794639 Capitalist
Capitalist's picture

Buy you can't eat gold! However you can eat shiny gold barbeque relish.

Fri, 09/14/2012 - 10:29 | 2794642 101 years and c...
101 years and counting's picture

oil and food.

Fri, 09/14/2012 - 11:08 | 2794934 ultimate warrior
ultimate warrior's picture


Fri, 09/14/2012 - 10:30 | 2794646 juwes
juwes's picture

Or just bet against treasuries, a bet that is up 28% in a few days.

Fri, 09/14/2012 - 10:30 | 2794649 Scalaris
Scalaris's picture


Fri, 09/14/2012 - 10:30 | 2794651 AvoidingTaxation
AvoidingTaxation's picture

Long Gold, short entitlements.

Fri, 09/14/2012 - 10:30 | 2794652 Dagny Taggart
Dagny Taggart's picture

Monster Boxes

Fri, 09/14/2012 - 10:31 | 2794657 Paul E. Math
Paul E. Math's picture

Buy goldschlager!

Fri, 09/14/2012 - 10:31 | 2794660 Upland27
Upland27's picture

barbarous relics! back to work serfs!

Fri, 09/14/2012 - 10:36 | 2794666 Dr. Engali
Dr. Engali's picture

I'll skip the house and invest in PMs,lead,and food.

Fri, 09/14/2012 - 11:21 | 2795046 Harbanger
Harbanger's picture

If you already own a house with some equity, why not get a fixed rate, low interest mortgage, buy some pm’s with the cash and pay off the loan over time. Even if the home price drops, you hedged with pm’s and locked in your loan rate. Sounds like a no brainer, what am I not seeing?

Fri, 09/14/2012 - 11:40 | 2795170 aerojet
aerojet's picture

There's a million variables, that's why.  And taking on yet more debt, even secured against equity (oh, btw, how did that work out for everyone in 2008-2012?), is a bad idea.  Equity is only paper wealth.

Fri, 09/14/2012 - 10:33 | 2794672 drivenZ
drivenZ's picture

I'd like to see BG put his money where his mouth is, in a meaningful way. I guess he has in a way by purchasing MBS but there's nothing stopping him from snapping up some more gold. 

Fri, 09/14/2012 - 10:40 | 2794724 madcows
madcows's picture

I thought I saw an article today where he unloaded a bunch of treasuries.

smart guy.  I wouldn't hold a single piece of government paper given the Fed's profligate printing.

Fri, 09/14/2012 - 10:33 | 2794674 Henry Chinaski
Henry Chinaski's picture

Gold and houses, bitchez!

Fri, 09/14/2012 - 10:36 | 2794686 youngman
youngman's picture

Actually you can eat gold...I had a salad once that had gold flakes on it....the Chef thought it was cool.....very artsey restaurant

Fri, 09/14/2012 - 11:15 | 2794977 GeezerGeek
GeezerGeek's picture

Didn't Moses make the chosen people eat their golden calf?

Fri, 09/14/2012 - 10:36 | 2794694 tmosley
tmosley's picture

Pfft, yeah, buy a house while gold is less than $50,000 an ounce.  Sure, I'll do that.

Fri, 09/14/2012 - 10:38 | 2794703 madcows
madcows's picture

I'm going long on wheelbarrows. A$$hole. Explain to me how driving up inflation, thus crushing the 99% of us, will spur economic growth and unemployment?  It won't.  It will do exactly the opposite.  I'm trying to understand the FED's real goal in this.  MBS's are going to be purchased from Fannie/Freddie.  They're government owned agencies now.  Is the real story that Fannie/Freddie are bankrupt and in need of bailing out, and thus bailing out the Government?  Is it a grand bank money laundering scheme?  How the hell is buying MBS's from Freddie going to do a damn thing to help the Average Joe? 

Maybe they have too many treasuries, but the Gov still needs cash.  Buy too many treasuries and the Chinese run away, so instead they funnel the funds through Fannie/Freddie.

Something smells fishy.

Fri, 09/14/2012 - 10:44 | 2794769 KidHorn
KidHorn's picture

I think the FED is trying to make it easier for Europe to monetize. If the US is doing it, why not us? We're in worse shape than them.

The FED can't buy treasuries because there's not much left for them to buy and the only other market large enough for them to buy $40b/month is MBS.

Fri, 09/14/2012 - 10:50 | 2794816 banksouttacontrol
banksouttacontrol's picture

You are the only poster that corretly identifies agency MBS. So the fed buys aagency MBS..does freddy and fany go out and buy the spx??? What am i missing?

Fri, 09/14/2012 - 12:30 | 2795447 Imminent Crucible
Imminent Crucible's picture

You misunderstand the GSE bond process. Fannie/Mac do not hold agency MBS; they create them and sell them to other entities like gullible and/or complicit banks and pension funds. A lot of FNMA/FMC paper is already held in the Fed's SOMA, but a great deal remains on bank balance sheets at bogus valuations. The banks need to dump it at par for cash, and the Fed's going to help them out. Cash in hand, the banks can buy equities or just pay themselves record bonuses for being Friends of Ben.

The Fed will be monetizing agency bonds in order to add $40 billion/mo. in unsterilized money to the system. BTW, Fannie and Freddie are still pumping out MBS by the truckload; after all, they're about all that's left of the US mortgage market. They're on track to generate another $1.38 trillion in mortgage-backed securities in 2012.

Bottom line, the Ponzi continues and unless you know how to hedge and dodge, you're the mark.

Fri, 09/14/2012 - 12:34 | 2795473 PoorMan429
PoorMan429's picture

Bingo, we have a winner!

 Cash in hand, the banks can buy equities or just pay themselves record bonuses for being Friends of Ben.


Or they can just reach the capitialization requirements of Basel III and collateral requirements to hold their derivatives positions.


Glass-Steagall be dammed!!

Sat, 09/15/2012 - 10:24 | 2798450 Imminent Crucible
Imminent Crucible's picture

"Or they can just reach the capitialization requirements of Basel III and collateral requirements to hold their derivatives positions."

I'm glad you added that, PoorMan. That was an important consideration I left out. The Fed's overriding goal in all this monetization and debasement is the gradual recapitalization of the primary dealers, at the expense of everyone else.

Fri, 09/14/2012 - 11:45 | 2795196 aerojet
aerojet's picture

You're on the right track, but I was thinking about this from the debt as money standpoint--the economy only grows via debt expansion, but there hasn't been any organic debt expansion because people are losing their jobs or afraid of losing their jobs, so they aren't excited about taking on new debts.  So in a zero-to-negative growth economy, the government can't run big deficits, but they need to do that at all costs or .gov will implode.  So what the Fed is trying to do is fill in the gap here--they're monetizing debt in order to expand the money supply and keep the growth machine going.  It really is kicking the can.  These schemes won't work for long.  The kind of growth this creates is completely centrally planned and not truly "real."  It's not precisely money printing, but it's damn close.

Fri, 09/14/2012 - 12:07 | 2795329 PoorMan429
PoorMan429's picture

I posted this last night, and Im putting it up again. Feel free to argue against, but this is how i see it. 

This is about bank survival, nothing else.


Connect these Dots:

Banks have new Capital requirements that most US banks are falling short on, and new increased collateral requirements for derivatives trading...


Banks dont want to lend to business, or individuals.

Banks are give jack shit on deposits. 

Big Banks are gobbling up small banks, remember "small banks are typically well capitalized " - b. bernake

Banks are going to sell their toxic assets to the Fed to clean up their balanace sheets. 

This is good bank/bad bank a la Citi Holdings on a systemic scale...Its all in the effort to provide the required capitalization for when the spigot stops, and the market collapses, and ensure the survival of the financial systems, and the TBTF banks. Nobody gives a shit what the quality of the asssets at the FED are. They have no P/L. The profits are deposited in the treasury, and the losses are conviently discarded.

This is preparation for the coming deflation, and a preparation tactic to survie it.

Look at money velocity, look at deposits at banks, banks are hoarding CASH not gold...

Decide for yourself...Im betting on the banks surviving. 

Now, let the junking commence..

Fri, 09/14/2012 - 12:46 | 2795537 nofluer
nofluer's picture

As previously posted by someone...


THAT's the ONLY question you should be asking now!

Fri, 09/14/2012 - 10:38 | 2794705 Atlantis Consigliore
Atlantis Consigliore's picture

Cash for the 2013 Post Election Crash  the Gold will be confiscated.  count on it. 

Fri, 09/14/2012 - 10:40 | 2794718 icanhasbailout
icanhasbailout's picture

Silver, on the other hand, is significantly more difficult to confiscate due to mass alone

Fri, 09/14/2012 - 10:40 | 2794725 Quinvarius
Quinvarius's picture

Cash will be confiscated.  Count on it.

Fri, 09/14/2012 - 10:41 | 2794731 madcows
madcows's picture

Isn't inflation a form of confiscation?

Fri, 09/14/2012 - 11:12 | 2794967 MsCreant
MsCreant's picture

Vaporization is already happening. Just before 911 they were talking about investigating 2.3 Trillion missing dollars. Inflation vaporizes the dollar as you hold it in your hand. I think they take over MBS AND the pension system. Commercial Backed too. This is the vaporizing, the crumbling. Too much fake value in the system for it NOT to vaporize. They will own everything and people will still be asleep at the wheel. The central banks ultimately all become "bad banks." The suction from the vaporizing flush will pull our brains through every orifice of our bodies if we have not battened down the hatches. And even if we have, it might happen anyway.

I have been thinking about the great unwind. It can't unwind. That implies a logical orderly procession of events with some hiccups here and there. There can only be destruction.

Fri, 09/14/2012 - 10:55 | 2794855 LawsofPhysics
LawsofPhysics's picture

Physical cash might have some barter value.  You will not have access to paper in banks.  nickels will be good for barter as will, death of the dollar, the IMF standing by with a new currency for all.  hedge accordingly.

Fri, 09/14/2012 - 11:10 | 2794949 francis_sawyer
francis_sawyer's picture

Nickles bitchez!

Fri, 09/14/2012 - 12:01 | 2795289 PoorMan429
Fri, 09/14/2012 - 12:03 | 2795299 PoorMan429
PoorMan429's picture

melt value of a nickel is 106% of its face value.

Fri, 09/14/2012 - 12:58 | 2795586 nofluer
nofluer's picture

Pre 1982 pennies are better.

Fri, 09/14/2012 - 11:39 | 2795154 Henry Chinaski
Henry Chinaski's picture

Nearly everyone will do stuff for you and give you things in exchange for FRNs.  It will be hard to change that.  Real hard.

Fri, 09/14/2012 - 11:48 | 2795212 aerojet
aerojet's picture

It's wasn't hard in Zimbabwe or Weimer Germany/Austria 1930s.

Fri, 09/14/2012 - 10:40 | 2794709 JohnKozac
JohnKozac's picture

I don't see house prices improving much this year. Unemployment and underemployment still rising. For example, only 20% of the jobs created in 2008 were "low pay." This year 60% of all jobs created were "low paying" ones.

I'd rather put the investment in PMs and watch them rise 20% rather the box that depreciates and drops 20%.

Common sense in this environment.

Fri, 09/14/2012 - 10:40 | 2794717 larz
larz's picture

The government can (and probably will at some point) take your house through eminent domain so that leaves PM

Fri, 09/14/2012 - 11:48 | 2795216 PoliticalRefuge...
PoliticalRefugeefromCalif.'s picture

They can also take your house with confiscatory taxation, nothing like a stationary target when all other means of stealing personal property runs short.. in short you can never own a home in a nation that actually encourages the rate of taxation to satisfy the government appetite.

Fri, 09/14/2012 - 10:40 | 2794727 Mercury
Mercury's picture

Mr Gross...Marketing Dept. on line one...

Fri, 09/14/2012 - 10:41 | 2794743 Bay of Pigs
Bay of Pigs's picture

The US Doelarr is sinking like a stone (78.72 dxy).

Gold is still relatively cheap and silver even more so.

Fri, 09/14/2012 - 10:44 | 2794767 SafelyGraze
SafelyGraze's picture


1. brute force. you sport a club and you know how to use it.

2. domination. you have the keys to the cage. you have ropes. you have pharmaceuticals. people comply with  you.

3. charm. you know how to get what you want by dint of your smooth personality.

4. deception. it's not your fault that they think you meant they have to pay you or else they die.

5. manufactured desire. they can't think rationally once they've gotten a taste of the thing they'll never fully have.

6. disapproval. if they don't follow allong, you and your network will ridicule/exclude them.

7. seige. you and your network control the supply or the access to the supply. and you're not going to let just any old person have some of that air/water/food/space.

Fri, 09/14/2012 - 10:45 | 2794775 Bastiat
Bastiat's picture

Gross forgot to say "bitches"

Fri, 09/14/2012 - 10:47 | 2794780 socalbeach
socalbeach's picture

I think Daniel Amerman has it right in that the Fed's action is another phase of financial repression, which he defines as fleecing savers with high inflation and low interest rates.  That differs somewhat from the definition I've read elsewhere which is to force savers into risky investments.  Here's his latest which just came out this morning:

"The cover story is that QE3 will be used to increase the money available for lending and to lower interest rates. It is a credit to Mr. Bernanke that he was able to read this statement with a straight face, for the assertion that the economy is being held down by too high of interest rates and tight money is ludicrous..."

Fri, 09/14/2012 - 10:51 | 2794791 banksouttacontrol
banksouttacontrol's picture


Fri, 09/14/2012 - 10:49 | 2794799 Racer
Racer's picture

'Become a debt slave'


Fri, 09/14/2012 - 10:49 | 2794802 Irelevant
Irelevant's picture

Friends, we are forgeting one small detail, gold didn't really go up in value, fiat lost value. We here at ZH have come to look upon things as being tragy-comic, and they fore sure are. However, it saddens me to see people out of work, scraping by, young without work, without a future. This is indeed turn out very ugly. In the end we are to blame, for we accepted being lied to, being brainewashed. We here at ZH are, maybe, and exception, that however is no reason for joy.
As for the house part, in a western world with a declineing population and soaring energy costs, not to mention taxes, a house is actually worthless, it doesnt produce anything. Gold is a store of value, much easier to move.
What people should be buying is insulation for their homes, a large propane tank for heating and for the propane generator (it will give you up to 7 years of ussage without refilling), a greenhouse, seeds, medicine, food, amo if permited by law.

Fri, 09/14/2012 - 10:55 | 2794854 docj
docj's picture

Long guns and ammo.

Fri, 09/14/2012 - 10:57 | 2794872 samsara
samsara's picture

Martin says;


".....The Fed said it will buy $40 billion of mortgages per month in an attempt to desperately foster a recovery in the real estate market.

Of course, this will also fail if they are buying mortgages from the bankers. They will use this as a means to dump what they have been trying to get rid of all along, while it is not necessarily guaranteed to stimulate employment or housing prices.."

Martin Armstrong

Fri, 09/14/2012 - 10:59 | 2794885 pebblewriter
pebblewriter's picture

SPX just hit its Bat Pattern target at 1472.43.  This is the .886 retracement of the 1576 - 666 crash.  Could be really interesting...

Fri, 09/14/2012 - 11:09 | 2794940 e-man
e-man's picture

I was wondering if we'd see a triple top in the SPX.  I guess 1526 could be taken out soon. If not, look out below.

Fri, 09/14/2012 - 11:02 | 2794904 fuu
fuu's picture

Better late than never Bill.

Fri, 09/14/2012 - 11:04 | 2794918 analyzer_66
analyzer_66's picture

Irelevant, nice rant,  ALL BULLISH !!!  Go Stock market.  Im going out to buy a scooter today so when gas hits $8 per gallon next week, my asshole wont be the size of the stearing wheel of my car.

Fri, 09/14/2012 - 11:18 | 2795011 DavidJ
DavidJ's picture
@Bernanke: The more you ease the less I plan to spend. As by engaging in more QE you create more long term risk, so I need to save more to deal with this increased financial risk.
Fri, 09/14/2012 - 11:38 | 2795148 vincent
vincent's picture

The Big Boys dumped financials and bought gold. They knew.

Financials on the rise. The reversal will be epic...they know.

JPM 41 and rising...MS to 30?

I'm 3x long popcorn and will enjoy every phucking minute of it.

Silver bitchez

Fri, 09/14/2012 - 11:54 | 2795252 CrawdadMan
CrawdadMan's picture

Gold can only extend so much.

Go long Silver!

Fri, 09/14/2012 - 13:31 | 2795781 Gadocat99
Gadocat99's picture

Platinum is moving faster.

Fri, 09/14/2012 - 13:45 | 2795861 JuliaS
JuliaS's picture

Platinum is industrial more than gold and silver. It only became popular when catalytic converters in cars became mandatory. Since then it's been following the way of the auto market. With car sales expected to collapse down to nothing in the near future so will the major demand for platinum. It is not a monetary metal (unfortunately). It used to be worth 2x gold, but not anymore. It may outperform other asset classes, but not for long. Examine its chart in reaciton to other recessions and QE's. Platinum doesn't look anywhere as good as gold as silver. Looks like a money-losing proposition.

Fri, 09/14/2012 - 14:56 | 2796369 dark pools of soros
dark pools of soros's picture

so it's time to rewrite the Dungeons and Dragons books where platinum was always worth more than gold??  Or if we kill the Bernack all will be back to normal in the realm?

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