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Endspiel: Fidelity Says "It Is Clear Now That The Fed Cannot Bail Equity Markets Out Any More"

Tyler Durden's picture




 

Uh... did a member of the status quo just tell the truth? Cue panic?

From Dominic Rossi, Global CIO, Equities, Fidelity Worldwide Investment via The Telegraph

At times like these, it can be difficult for investors to know what to do.

We should expect news over the next few weeks to deteriorate further. As we go into the earnings season shortly, there will be more missed forecasts and guidance from companies will be uncertain and gloomy. For investors, valuations will come in to play at some stage. Yields will be well covered because balance sheets are strong.

It is clear now that the Fed cannot bail equity markets out any more and any interest rate cuts by the ECB may not have much of an impact on markets. The solution on the fiscal front will be either Greek default or Germany accepting that it has to fund debt restructuring and so reduce the quantity of debt in Greece. This will be a prototype for other European countries.

At times like these, investors should remember the strong get stronger. We will see M&A pick up in Europe. There is little capital around and so the threat for companies from new competition is disappearing.

Markets will have to consolidate so that oligopolies or duopolies are created and the remaining companies have strong cash flow and don’t have to rely on the debt markets. This is a carbon copy of what happened in emerging markets 15 years ago. Equity will shrink as well-financed companies grow by acquiring others and buy back their own equity. In time, this will stabilise equities.

 

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Fri, 09/23/2011 - 08:43 | 1700547 OrdellRobbie
OrdellRobbie's picture

silver and gold down dramatically, paulson fund will be down big again this month

Fri, 09/23/2011 - 08:44 | 1700553 sunnydays
sunnydays's picture

GAME OVER!

Fri, 09/23/2011 - 09:04 | 1700615 ??
??'s picture

BlackRock ""fear will be giving over to greed before too long"

 

Terrence Keeley of BlackRock at the G20 on Bloomberg TV an hour ago  discusses how BlackRock is in the middle of every important conversation and how Lagarde will be brought to heel:

"fear will be giving over to greed before too long ... I had a meeting with a central bank governor yesterday who said (Lagarde) thought the Euro would not exist in one year, I promise you  by the end of this weekend she will not hold that position ...  Christine is new on the job obviously finding her way"

http://www.bloomberg.com/video/75984954/

Fri, 09/23/2011 - 09:21 | 1700723 Zero Govt
Zero Govt's picture

that's the same Blackrock that likes China because its Totalitarian State control 'helps' smooth the path for capitalism (at least Blackrocks shoddy authoritrian non-free market version of capitalism - fascism anyone?)

meanwhile yesterday 1,000's of the Chinese public attacked Govt buildings (great target selection by the public... for once!). The local and State Govts (public emplyees) in cahoots with Blackrock-stylee private companies are trying to steal peoples private land for their own purposes (charming!)

The Shanwei government accused villagers of having “ulterior motives” and of “inciting” villagers to attack the Communist (fascist? ..they're all the same parasites whatever label used) Party HQ and police station by 'spreading rumours about police officers beating a child to death'.

It's not like Govt ever spreads rumours (WMD, 9/11 terrorism caused by Saudis used to invade iraq etc) to incite violence is it?

Maybe Blackrock have lost the fascists plot on the Euro ..and China

Fri, 09/23/2011 - 08:52 | 1700590 kalasend
kalasend's picture

Same goes for a lot of ZHer.

I just don't think everybody is as much on physical as their comments make it look like

Fri, 09/23/2011 - 08:58 | 1700620 Temporalist
Temporalist's picture

Why because gold is still up for the year and if anyone, ZHer or not, bought physical gold in the last 52 weeks or more they have gained value?

Why do you visit ZH and learn nothing?

Fri, 09/23/2011 - 09:06 | 1700651 spiral_eyes
spiral_eyes's picture

@kalasend

I'm 95% physical, 5% mining stocks. The key is to buy regularly, buy the dips, and to have been in the game since at least 2006.

virtually everything in my portfolio still has a lot of squeeze room before i'm in the red on ANY trade. gold could drop to $700/oz and I'd still be in the black, because although I've been buying at $1200, and even some at $1700, the majority was accumulated much lower.

Fri, 09/23/2011 - 09:08 | 1700662 jekyll island
jekyll island's picture

OK, you're a genius.  Quit bragging.  Or at least give me your projection for Tower Hill Mining.  

Fri, 09/23/2011 - 09:25 | 1700740 spiral_eyes
spiral_eyes's picture

To be honest I'd say I was quite mediocre among ZH readers in both absolute P/L and % terms, but I don't know for sure. I mean everyone has outperformed John Paulson this year...

And Tower Hill... It's 6 times the price it was in Jan 09. Personally I would wait 'til the next QE spike and sell... that's what I'm doing with my gold mining stocks. When the big crash hits (possibly one more QE cycle away — although not necessarily) gold stocks are going into the ground short-to-medium term...

Fri, 09/23/2011 - 10:22 | 1701000 kalasend
kalasend's picture

Yeah right, swear the same allocation for other ZHer's. Who's talking about u?

Fri, 09/23/2011 - 09:00 | 1700626 reload
reload's picture

Fair enough, but if you held physical pm`s at a cost average 20% + below current market prices would you be rushing to sell? what would you do with the fiat you sold for? Most Pm holders are simply trying to avoid counterparty risk. I think most gold and silver bugs have been accumulating for a long time and their coat averages are still very comfortable.

Fri, 09/23/2011 - 09:51 | 1700866 johnQpublic
johnQpublic's picture

+++++++++++++

Fri, 09/23/2011 - 10:11 | 1700943 Esso
Esso's picture

Yep, bought gold between $740 & $904 and silver up to just under $18.

Not trying to buy my way through the crisis, but rather trying to transfer wealth through it. Won't be opening the vault until we're on the other side.

Fri, 09/23/2011 - 09:00 | 1700629 MonkeySmoke
MonkeySmoke's picture

GSR is currently 51:1 which means trade gold for silver and when the GSR reverts, and it will, swap silver for gold and stack the difference. Meantime--exchange fiat for silver at a much better exchange rate!! kalasend what do you know about how much physical anyone has? You know nothing.

Fri, 09/23/2011 - 09:18 | 1700709 Dingleberry
Dingleberry's picture

As for PMs, physical delivery has risks.  You have the risk of theft, costs of storage, etc.....and high taxes upon redemption.  Pms are insurance. Period. Even if they exploded, most folks get paid in dollars, have 401k that aren't even allowed to invest in gold, and on and on and on.  PM-ers are buying gold/silver only to keep a semblance of purchasing power.  As I heard a wise man once say, "you may get rich if gold goes to 5k, but you won't want to look out your front window".

Fri, 09/23/2011 - 08:54 | 1700604 101 years and c...
101 years and counting's picture

any ECB rate cuts will KILL the EUR and send equities into a massive freefall.

Fri, 09/23/2011 - 09:51 | 1700868 Quinvarius
Quinvarius's picture

Gold is going to benefit greatly from the secret loans the Fed is making right now.  Just like 2008, but this time they don't even need to ask permission.

Fri, 09/23/2011 - 12:54 | 1701896 covert
covert's picture

its about time! what took so long?

http://covert3.wordpress.com

 

Fri, 09/23/2011 - 08:45 | 1700559 El Gordo
El Gordo's picture

Is anybody squealing yet?  They're pinching pretty hard.

Fri, 09/23/2011 - 08:46 | 1700564 Quadlet
Quadlet's picture

Think your money is safe in your bank?

Fri, 09/23/2011 - 08:53 | 1700598 Momauguin Joe
Momauguin Joe's picture

Safer in well secured stores of vodka, whiskey, toilet paper, trash bags, footwear, clothing, ammo, etc....

Fri, 09/23/2011 - 09:54 | 1700879 Esso
Esso's picture

Yes, and food.

A five gallon bucket holds ~35 pounds of rice or beans.

Fri, 09/23/2011 - 10:16 | 1700970 Momauguin Joe
Momauguin Joe's picture

True that. Many more things to stock up on that will retain their value. Just off the top of my head: Cartons of cigarettes (I've personally seen cigs selling NOW for $1 A PIECE at local inner city bodega's), hammers, nails, door hinges,  rainwater, non-hybrid garden seeds, canning jars, reading glasses, over the counter medicines, vitamins, portable solar panels....

Fri, 09/23/2011 - 11:12 | 1701264 Storch
Storch's picture

Propane, antibiotics, sewing needles, wool socks...

Fri, 09/23/2011 - 13:05 | 1701978 Saxxon
Saxxon's picture

Excellent thoughts but cigarettes quickly get stale - grow your own terbacky.

Fri, 09/23/2011 - 08:47 | 1700568 Stoploss
Stoploss's picture

Holy Fucking Shit...

Fri, 09/23/2011 - 08:48 | 1700571 the not so migh...
the not so mighty maximiza's picture

I hope Fideltiy will stop sending me emails to contrubute more to my 401k then.

 

 

Fri, 09/23/2011 - 08:48 | 1700575 Miss Expectations
Miss Expectations's picture

Years of casual contagion talk.  Shall we soon see how contagious panic is?

Fri, 09/23/2011 - 08:48 | 1700576 spiral_eyes
spiral_eyes's picture

LOL i disagree.

Benny will try IOER, try another huge tidal wave of QE, try Op Twist 2, and ultimately probably try printing money and directly monetising gov't debt (an idea so hyperinflationary even Krugman scorns it)

Will any of these save the global financial system?

Nope. It's dead in the water.

Will the endgame be fun to watch (and profitable if you're long gold)?

You betcha.

http://azizonomics.com/2011/09/22/bernanke-didnt-pump-equities-get-dumped/

Fri, 09/23/2011 - 08:48 | 1700577 sudzee
sudzee's picture

Printed 1's and 0's no longer accepted as money.

Fri, 09/23/2011 - 09:11 | 1700675 Zgangsta
Zgangsta's picture

So...stock up on nickels, quarters, and five dollar bills?

Fri, 09/23/2011 - 08:48 | 1700580 Terra-Firma
Terra-Firma's picture

Zerohedge......is the only change you should believe in

 

everything else is just obummer.

Fri, 09/23/2011 - 08:50 | 1700586 youngman
youngman's picture

Interesting..he didn´t really say what to do with your money did he???

Fri, 09/23/2011 - 09:02 | 1700636 the not so migh...
the not so mighty maximiza's picture

its implied   babes, bullion, bullets, beans, beer, and bunkers

Fri, 09/23/2011 - 08:50 | 1700588 boom goes the d...
boom goes the dynamite's picture

Is  today Black Friday or is that next week?

Fri, 09/23/2011 - 08:50 | 1700589 orangedrinkandchips
orangedrinkandchips's picture

His ass will be fired for TELLING THE TRUTH....

 

poor bastard.

Fri, 09/23/2011 - 08:55 | 1700606 cossack55
cossack55's picture

No shit. His chances of guesting on Quack on the Street just went to the same level as Mike Pento.

Fri, 09/23/2011 - 08:51 | 1700592 somethingelse
somethingelse's picture

it's time for us strong hands in physical Ag to don our elvin silver chain mail like Frodo to withstand the onslaught and live to fight again another day   =)

Fri, 09/23/2011 - 08:57 | 1700610 DaBernank
DaBernank's picture

Poor KITCO live silver page is broken doesn't even send a chart anymore, their servers must be broken with people hitting "refresh" on their browsers every second. Not really worried, not "all in" had some speculative positions in ETFs that are getting wiped, c'est la vie, I did well now I give some back. If it's *risk capital* it's not a huge problem now is it? People betting with their retirement money, kids' college funds, food money, are fucked.

Fri, 09/23/2011 - 08:53 | 1700593 junkyardjack
junkyardjack's picture

The real drop is about to come.  Moves like this have got to crush a lot of hedge funds.  Everyone bet on Gold and its done for now, LT holders may be in the clear by later this year but can the levered funds using OPM withstand the pain?  AAPL is the last standing safe haven for now

Fri, 09/23/2011 - 09:10 | 1700668 Scisco
Scisco's picture

Psssttt. I got a secret. Apple sells luxury goods. All but a few are getting wiped out right now. When it comes down to a choice between the iPhone 5 and or keeping yourself warm, who do you think is going to win.

Fri, 09/23/2011 - 09:34 | 1700773 Going Loco
Going Loco's picture

But you can burn an iphone to keep warm. While you tuck in to your oh-so-nourishing ipad.

Fri, 09/23/2011 - 09:39 | 1700792 Spastica Rex
Spastica Rex's picture

iPhone 5 and then riot against the evil government for not keeping us warm.

Fri, 09/23/2011 - 11:16 | 1701292 Storch
Storch's picture

Two thirds of those in the poverty index pay for cable telivision. Obviously the iphone will win.

Fri, 09/23/2011 - 11:17 | 1701294 Storch
Storch's picture

T

Fri, 09/23/2011 - 08:52 | 1700596 Bindar Dundat
Bindar Dundat's picture

The world is not ending you idiots!   It is just changing.

Fri, 09/23/2011 - 08:53 | 1700601 junkyardjack
junkyardjack's picture

Like it did for the Mayans

Fri, 09/23/2011 - 08:56 | 1700611 cossack55
cossack55's picture

Our turn next year.

Fri, 09/23/2011 - 09:03 | 1700643 Temporalist
Temporalist's picture

I think the great monster Bernankenstein killed the Mayans and is back for the second coming to destroy what is left.

Fri, 09/23/2011 - 09:32 | 1700766 Wynn
Wynn's picture

The Mayans weren't destroyed. They just said fuck it.

Fri, 09/23/2011 - 08:56 | 1700612 Mitzibitzi
Mitzibitzi's picture

I agree. But my opinion would likely be different if I lived in an inner city.

Fri, 09/23/2011 - 09:12 | 1700684 jekyll island
jekyll island's picture

You're right.  Remember how the gasbags on CNBC were calling the dotcoms the "new economy" before the bubble burst?  They were wrong.  You, Bindar, correctly if not succinctly state we are transitioning to the real "new economy" that will unfortunately be ushered in by fiat currency collapse.  

Fri, 09/23/2011 - 09:43 | 1700811 Caviar Emptor
Caviar Emptor's picture

Throughout history the world did not end. But many people's world ended  many times

Fri, 09/23/2011 - 10:24 | 1701015 Robslob
Robslob's picture

Welcome new guy (bindar dumdat)

1) Most here recognize new shills when they arrive

2) Just because people on this board acquire and store "non-debt based" capital does not mean we think the world will end

3) To your point...because the "world is changing" we change with it by preserving wealth via PMs

4) I do not believe you to be an idiot just because you post like one

 

That is all...you may go now...


 

Fri, 09/23/2011 - 08:55 | 1700605 americanspirit
americanspirit's picture

100 million Chinese are waiting to buy all the gold and silver that weak Western hands want to sell, one or two grams at a time. It will add up quickly, and then the Chinese state will move in and forcibly exchange all those little gold and silver grams for paper. They saw what FDR did and they think it was a brilliant move.

If you sell your PMs because they've dropped a little we all lose long term, big time. What goes to China will stay in China virtually forever, and when the world finally does go to a gold standard guess whose currency will be the world's reserve paper money?

Check and mate.

Fri, 09/23/2011 - 08:57 | 1700617 cossack55
cossack55's picture

Maybe add the Russians in as well, and the Indians, you know, all the patient people.

Fri, 09/23/2011 - 09:07 | 1700660 Bicycle Repairman
Bicycle Repairman's picture

I am learning Mandarin and I'm looking for a Chinese girlfriend.

Fri, 09/23/2011 - 09:11 | 1700676 Temporalist
Temporalist's picture

Why are people freaking out about gold?  It's up for the year and up over 30% from a year ago.  Only traders that are playing in the rigged markets against CBs and hedgies care about the micro changes.

Fri, 09/23/2011 - 09:12 | 1700681 obelisks
obelisks's picture

and don't forget some of the 1 billion Indians as well

Fri, 09/23/2011 - 09:16 | 1700698 youngman
youngman's picture

I am with you 100%....they are buying the real hard metal as we speak....their algos are working overtime also...tons and tons of it...their long term goal is to be the reserve currency...done deal....

Fri, 09/23/2011 - 10:33 | 1701061 ronin12
ronin12's picture

Dont entirely agree. China government owns very little gold. If they try to enter the market in any meaningful way, the sprice will spike upwards. They are in a tough spot.

You think peasants making $2 a day are going to be buying a lot of gold?

 

Fri, 09/23/2011 - 08:59 | 1700621 fdisk
fdisk's picture

Here is the problem, GOLD and Silver dropping ahead of Markets
I know that Average price of our Physical holding are lower, but
it doesn't change the fact, while Market dropping alone with
the Metals, our Net Worth slowly wiping out as well. So?
Not sure what you cheering about? Silver down another 8-10%
that dropping 4x S&P speed. Maybe switching a tone to more neutral
would help metals and markets recover more quickly? :)))

Fri, 09/23/2011 - 09:01 | 1700631 cossack55
cossack55's picture

Fuck the markets.

Fri, 09/23/2011 - 09:04 | 1700641 fdisk
fdisk's picture

Well ya, you've just lost 20% on the Silver in couple of days alone, so far, keep fUcking.

Fri, 09/23/2011 - 09:32 | 1700765 fuu
fuu's picture

You say "lost 20% on the Silver" I hear "Silver 20% off!"

Fri, 09/23/2011 - 09:46 | 1700836 Larry Darrell
Larry Darrell's picture

I checked my stash versus your call that I've lost 20%.

Not to my surprise, but you were wrong--they still have the same mass and weight.

Those laws of the physical universe sure are a bitch for morons -- Matter cannot be created or destroyed.

 

Fri, 09/23/2011 - 09:07 | 1700653 tmosley
tmosley's picture

Those who are cheering do so for two reasons:

1. They have cash flow and/or dry powder reserves, and are happy because they are able to buy at prices they never thought they would see again.

2.  They understand the difference between paper and physical, and recognize that falling paper prices hasten the end of the paper market.  If the COMEX busts, then they are going to be on the receiving end of a gigantic wave of cash from industrial users who will pay nearly any price to get the silver they need to stop from going out of business.

Fri, 09/23/2011 - 09:52 | 1700874 Hearst
Hearst's picture

Long term both Gold and Silver (physical) are solid investments.  This system is crashing.  They can put the price of either metal wherever they want.  Big events about to transpire.

Fri, 09/23/2011 - 09:14 | 1700688 kurzdump
kurzdump's picture

What exactly is your problem fdisk? You seem to be happy about papergold and -silver plunging. Can't you just masturabte your way out of happiness silently without taunting others? 

Fri, 09/23/2011 - 09:31 | 1700760 fdisk
fdisk's picture

me, happy? You kidding? I'm loaded on both PM stocks and metal
paper/physical and I'm not happy that Market is dropping, cause
I know Metals will recover quickly ones Market pops at least.

But who the heck knows what Europeans will cook over the weekend?

Greek default? Good luck.

Fri, 09/23/2011 - 09:20 | 1700718 jekyll island
jekyll island's picture

fdisk, 

 

Just be patient.  Gold and silver have acted like a cork being held underwater.  They can be suppressed, but they will pop back up when manipulators can no longer sustain the attack.  Look at dips as buying opportunities if you still have cash.  Euro crisis is causing panic buying of the FRN$.  Nothing has changed fundamentally, inflation is here and when the sheeple realize it the stampede out of US treasuries will be historic.  You will want to have a position in PMs before this happens because you probably won't be able to get your hands on them when this occurs. I am comfortable riding out the volatility because I cannot see any other scenario where gold and silver do not go much higher.    

Fri, 09/23/2011 - 08:59 | 1700622 The4thStooge
The4thStooge's picture

silver and gold are victems of temproary dollar strength. that's it. remember when everone said "gold isn't going up, the dollar is going down." it's the same thing now in reverse. don't panic and dont sell. your gold and silver is fine.

Fri, 09/23/2011 - 10:12 | 1700950 DCFusor
DCFusor's picture

So, the dollar went up 10% or 20% without any of the indicators (except inverse one of the pm's?) showing it?  Kinda doubt that the dollar has gained ANY purchasing power in the last two days, and surely not that much.  See your grocer for details.

Fri, 09/23/2011 - 09:00 | 1700624 monopoly
monopoly's picture

And have a nice day. :)

Fri, 09/23/2011 - 09:00 | 1700627 PaperWillBurn
PaperWillBurn's picture

Move from the weak hands to the strong. The harder we crash the faster the transition

Fri, 09/23/2011 - 09:00 | 1700628 Tsar Pointless
Tsar Pointless's picture

Yes, Dominic, but do you see ANY chance of there being a National Basketball Assocation season this year?

Priorities, bitchez!

Fri, 09/23/2011 - 09:40 | 1700797 jekyll island
jekyll island's picture

Is the NBA gonna be bailed out by the Fed?  

Fri, 09/23/2011 - 09:02 | 1700635 curbyourrisk
curbyourrisk's picture

Ben is going to take this article as an outright challenge.  Expect an onslaught of shor squeezes today by day end.  Ben will say....See, I can still do what I want.

 

someone needs to silence the mouth.

Fri, 09/23/2011 - 09:02 | 1700637 Monedas
Monedas's picture

These corrections are useful ! When the Feds come to audit your PMs, tell them you were wiped out in the Obama correction of 9-11-2011 ? You learned your lesson and converted to Fiat ! You're workin' at McDonalds and makin' ends meet with Food Stamps ! Sue me ! Monedas 2011 Madalyn Murray O'Hair had a stash of Gold ! I'll bet Michael Moore is a stacker !

Fri, 09/23/2011 - 09:02 | 1700640 buzzsaw99
buzzsaw99's picture

Did they ever pull their money market funds out of eurobanks or is it just their short bus guy who had an epiphany?

Fri, 09/23/2011 - 09:07 | 1700659 Bastiat009
Bastiat009's picture

If you bought gold to protect yourself in case of currency default, stock market collapse, massive amount of US$ being given to banks ... you made the wrong bet. You should have bought ... well, I don't know otherwise I wouldn't be here.

Fri, 09/23/2011 - 09:19 | 1700706 GeorgeHayduke
GeorgeHayduke's picture

It looks like the vampires will leave no stone unturned in their insatiable need for ALL wealth the planet can provide.

However, this is just another battle in a war that is still working itself out. After the dust has settled a little further down the road we may finally figure out that, like most wars, the emotional stress, monetary expense, and body count really wasn't worth it in the first place.

Fri, 09/23/2011 - 09:08 | 1700661 Racer
Racer's picture

Looks like the Fedsters haven't completely given up the way they keep pumping overnight and pre-market futures!

Fri, 09/23/2011 - 09:10 | 1700669 TradingJoe
TradingJoe's picture

It is in times like these that ballsy traders are setting up for a killing later on, in ANY asset class! Buy Physical PMs NOW, wait to go long in a few weeks, at the most!

Funny how people are taking markets down to only get gripped by fear(and panic) themselves! This is the time to GO IN BIG, be patient and keep pouder dry for a fea more days, maybe even a week or two but the BIG INTERVENTION will come, sure, maybe one more last time before the real big unwind, this is just "repositioning"!

I would like to see REAL TRADERS in action not HFTs and button pushers!

FEAR IS GOOD!!!

Fri, 09/23/2011 - 09:10 | 1700670 monopoly
monopoly's picture

Lets keep it simple guys. Do you really believe this administration is on the right track and you want to own dollars long term. Greece first, and then we move on. Not going to tell you that my boards do not look ugly, they sure do. But I am selling none, will continue to add a little more on each dump and will buy more physical.

I have 0 margin, 0 stocks outside of miners, confetti, physical and that is what I do. Wrong, maybe, but I think not. But I am down 15% from all time highs in our accounts. I too feel the pain. But am not changing.

Fri, 09/23/2011 - 09:12 | 1700686 WoodMizer
WoodMizer's picture

"I want you to levitate the futures HAL."

"I'm sorry , I can not do that Ben"

"Lift the fuckin futures HAL"

...

"God damn it we are gonna need rule 48, and get the PPT on the phone."

 

The Future can't be bailed out.

Fri, 09/23/2011 - 09:23 | 1700735 Zgangsta
Zgangsta's picture

The only safe haven is...the yen?

Fri, 09/23/2011 - 18:56 | 1703845 lewy14
lewy14's picture

I greened you for the implied 'WTF?' latent in your comment.

Fri, 09/23/2011 - 09:27 | 1700746 Hard1
Hard1's picture

Well, believe it or not, the JP Morgue is starting to see further deterioration in Europe, that the Monetary policy has reached it's capacity to be effective and that when treasuries blow they will do it big-time.  I met with the first serious economist that I've seen in ages recently.

Fri, 09/23/2011 - 09:28 | 1700751 chibato
chibato's picture

I have been lingering around ZH for the last year just soaking up information, and since that time have accumulated a nice pile of physical PMs.  I figured this would be just as good a time as any to have my first post.  It would have been nice to have had a crystal ball and kept a bit more fiat powder dry for days like today, but I am not accumulating PMs based on speculation or a quick buck. As a percentage it may appear I have a substantial loss, but the great thing about physical is I still have the same amount I had last week, and all of it us unencumbered. Selfishly, I kind of hope that this all was planned by the FED and other CBs. In the short term if this is manipulation it should keep the dollars I earn a living in buoyed for a while longer all while giving me more time to accumulate more barbaric relics. However, I realize that it is just going to make problems for the WEST much worse in the long run.

Fri, 09/23/2011 - 12:34 | 1701733 bankruptcylawyer
bankruptcylawyer's picture

yea i'm with you. 

the rational man protects himself all the while understanding that the systemic crime commited by the banks that forces him to protect himself is in turn forcing him to doing somethign which will only foster a catastrophic end of the banks which in turn is not THE solution, but only a seeming precursor to the solution. 

clearly, the natural order is that the bad banks, the broke banks should be destroyed or left to die. the longer they are on life support the worse it is for the possibilty of finding a solution to honest, well capitalized, non-predatory banking because they cannot allow that to happen while they are on life support as it will ensure they are at some point left to die.

the 'good bank/bad bank' model to the solution is seemingly sensible. and follows the above pattern except for the glaring truth that it is the very banks on life support proferring this 'solution' which means it is no solution at all if it in any way could help mitigate damage to themselves.  it is a zero sum game. and any 'good bank bank bank' solution that comes from the horses mouth is guilty as charged. so what is the reasonable man to do?

 hoarding any commodities to protect to yourselves from the banks ONLY will be helpful if you find a way of fostering honesty in the system. destroying , or helping the self destruction, of the corrupt bad banks could be considered a start. but it will inevitably resemble a feudal or traditional historical regime and itself will be subject to corruption eventually. that is regression. and ultimately, hoarding will only be useful if it is done towards a progressive end----the end of creating GOOD banks. 

  perhaps hoarding ccan do this by giving those hoarded commodities away to the people that need them without the use of banks (not theoretical banks but the banks that are connected to the systemic problems of the banking system which means more or less ALL banks , but prioritized in order of danger from biggest to smallest, from fed, to local lending credit union) . ----the point is that essentially making yourself into a 'good bank', is the solution. being a rock of support for helping people build, work, and trade to get their daily honest living done. more realsitically , one can attempt to do this on ones one while at the same time doing one's best to support the 'least corrupt' local credit unions, and other money insittutions that are the most local and independent in nature for the systemic criminal beast known as the fed and primary banks.

the solution is not destroy everything and be done with it. that will lead to more of the same corruption in one form or another. consider the corrupt former soviet union as a warning of destroying an old system without plans  to replace it with something better. yes, things CAN get much worse in terms of corruption.

 the solution is find a new, honest way , of banking to replace the old way. 

now for a couple of my half baked solutions.

some of the obvious steps would be---------

banning the use of financial instruments based on over 10 years of duration. [eliminating the existance of the 30 year mortgage]. 

nationalizing the entire insurance industry---and banning the use or possession of any credit product that is not held and use , by and for, the insured interest for his insured interest. -----[ eliminating all cds and recharacterizing them as they ALWAYS SHOULD HAVE BEEN CHARACTERIZED as bond insurance ]

-----all banks must be capitalized at 20%. or more. the more they are capitalized, the less they get regulated. banks at 100% capitalization do NOT get regulated. ( does organized crime get regulated? ) this would FORCE criminal banking to be 100% capitalized thereby reducing the pool of available criminal banks that would be willing to launder drug money-----

----- ALL bank or financial contracts of any sort must be registered with a centralized registration entitity for legal confirmation purposes.  any non-registered contract cannot be sued upon. 

-----

you can take it from there. 

but this is a start toward rebuilding the honesty which any advanced system of human social behavior requires.....because 'banking' is just a word. and money is just a word. 

but the idea of decision making, and facilitating decision making is GOOD. people can and should make decisions, and bringing honesty to the process is at the heart of advancement, not simply destroying the corruption. 

Fri, 09/23/2011 - 09:33 | 1700769 ArkansasAngie
ArkansasAngie's picture

And the new world order is that there shall not be any competition because the strong get stronger?

Horse manure.

This is the desired resolution to the economic crisis by TPTB. 

The strong shot their wad and lost.  Now they want time to reload and shoot again?

The sorting out of who owes who what needs to be done in open court room

Fri, 09/23/2011 - 09:33 | 1700770 mess nonster
mess nonster's picture

All PM holders... do not panic! If you hold your gold, it will eventually be worth something to someone. You can trade it for the food and other daily commodities you need.

If you have AuAg, the maybe you will get to put off the need to go down to the clinic to get your ObamaCare chip, which will allow you to participate in the mainstream economy.

If you're holding gold as some sort of means to preserve wealth, then you should panic, because the only way to preserve and/or grow your wealth is to join the ranks of the elite. Everyone else is going to get burned. Gentle hint: If you're a commenter here, you are not part of the elite. "They" log on , but only to observe. If I were you, I'd start kocking on their door. ...but you'll still have to have a healthcare ID chip.

Fri, 09/23/2011 - 09:50 | 1700855 Spastica Rex
Spastica Rex's picture

"They" log on to observe? How did you come to possess this knowledge? Did "They" give it to you?

Fri, 09/23/2011 - 09:44 | 1700823 janus
janus's picture

sussinct is the word that comes to mind, TD; even though i believe i've misspelled it.

Fri, 09/23/2011 - 09:46 | 1700838 Atlantis Consigliore
Atlantis Consigliore's picture

Rome Burns, and the FED and Obummer do the TWIST....

 

everyone ready for 2012  when agencies, sec, cftc, depts of ED, Energy, epa, czars, ducks,  geese, anything in $ 1 Trillion cut

and a flat tax of 15% enacted no tax on dividends, or cap gains,   Singapore Model initiated?

get ready...the losses in bonds will be huge. 

 

Fri, 09/23/2011 - 10:12 | 1700947 New American Re...
New American Revolution's picture

He's absolutely wrong.   They can and will bail it out, Ben just has to be a little more careful when he does it.   Maybe when Boehner, or at least the Senate is begging him for QEIII.  It'll come.

Fri, 09/23/2011 - 10:13 | 1700954 whoisjohngalt11
whoisjohngalt11's picture

Gotta love this line...... Germany accepting that it has to fund debt restructuring and so( reduce the quantity of debt in Greece). Yea tell all them silly Germans to pull the gold out of their saving boxes to keep Greece from habving to work longer, or harder , btw that sounds like the US of A

Fri, 09/23/2011 - 10:46 | 1701121 pithea
pithea's picture

Do you mean a 'member of the establishment'? The status quo doesn't have any members.

Fri, 09/23/2011 - 10:48 | 1701130 GCT
GCT's picture

Why panic, better to have physical gold and silver then paper.

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