Mostly left unsaid about the JPMorgan trading loss is the most crucial point, writes Sallie Krawchek: The size and risk of the trade was identified not by management, but by the press, and then it took weeks for JPM to put a number on the loss. And this from one of the savvier management teams. Regulators need to take note before heaping more complexity on an already incredibly complex business. [View news story]
Wish I could read the article. I won't sign up to FT.
No problem....when I think of SEISMIC I think of Japan a year ago. It's like a double or a triple vs. current prices. I will easily buy a 10 - 15% per year upside for the next 5 years.
The Achilles' Heel Of The U.S. Economy [View article]
Bob - I'd be ok with a concept like that. The original intent was not to influence the markets creating an element of inflation in other assets. But with some proper, intelligent oversight, perhaps there is something that could be done that would kill multiple birds with one stone. I don't want someone like J. Corzine being unjustly enriched by having a finger in a pie where it doesn't belong.
Looks like another SA title imposition. Otherwise you conclusion doesn't support the title. I don't think a Seismic move is coming. That would require some external event of terrifying proportions. However, I do see continued upward movement as the US continues with $1.5 Trillion deficits for at least the next 5 years. That suggests to me a persistent march upward.
Is The Latest Euro-Scare Now Behind Us? [View article]
Move about 20 million Greeks to Germany and 20 million Germans to Greece and things will change in about 10 -15 years. Better if you move some 25 - 35 year olds.
No the scare is not behind us. Many will brush it over, but it will not go away until it is resolved.
The Economy Grows Under The Shadow Of Recession [View article]
Freddy....with all due respect, I don't believe the projections of deficit/GDP. I don't believe we'll have deficits less than $1.5 T in any of the next 5 years, and if we do, it will be marginally smaller. I agree that we'll have slightly improving GDP, but if the GDP growth rate is lower than the deficit as % of GDP - say 2% vs. 9% then the ratio gets worse. Over the last 10 years, spending has grown at 2x the rate of revenue. It will take a magician to reverse that paradigm.
The Achilles' Heel Of The U.S. Economy [View article]
Cutiger75 - we've printed $16 Trillion. Certainly we have spent a bunch of it unwisely and we are suffering for it in a lot of different ways, but printing money creates inflation / hyperinflation when the quantities are in the stratosphere AND when there is a shortage of goods or a disruption in the supply of goods into the market.
To endow the SS system with $2 Trillion of additional funds in the form of US Treasuries would be nothing more than a "one time adjustment to interest earned" on the treasuries held in the SS Trust fund.
1. It would not find its way into SS recipients accounts for the next 21 years. 2. It would supplement 25% of the shortfall in benefits that will be payable in 2033 3. It would be used by the vast majority of recipients as income to purchase normal living expenses 4. It would not enter the stock market chasing yields in the interim 5. It would not be invested in anything such as commodities. 6. It's not designed as stimulus 7. It doesn't shift current demand or supply 8. It doesn't require a shift of consumption via higher FICA rates that lower take home pay
All in all.....IMHO....it's a pretty good solution.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Central Bankers will take any action required to assure liquidity in the financial system and to save the banking system - including things like dollar swap agreements. Anything they can conceive of in their brain to save their system - they will undertake.
What do you think will happen the the EURO's that were used to bail out Greece if Greece goes down the toilet? They will vanish and where did they come from? Not from anyone's "paid in capital". They were created out of thin air.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
So 7th and Net.....is that the way it was the day after the Constitution of the US was ratified. "The price of gold....was what someone was willing to pay for it". Or was it "established" by the sovereign?
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
NOT. It wasn't a wave of wealth investors who came into the housing market. It was a wave of un-wealthy investors who thought they could make money on a property by buying it thinking they could flip it in a year and make $50k or $100k.
There are certainly "speculators" in the Gold market. Thanks to vehicles like GLD and SLV anyone can play if they have a brokerage account. And all too soon, the paper "investors" will take their lumps just like the MF Global guys did.
The ETF's were set up by the large banks to facilitate their manipulation and enhanced control over physical stocks of gold and silver. You can rest assured that if the crap hits the fan, GLD will 1.) probably never cash out their holders of ETF shares or 2.) cash them out with USD and not physical metal. That will leave the bank holding the metal. That's why the ETF was set up in the first place.....to leave the bank holding the metal.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Gold is universally priced in USD. Consider that we'll have 10% currency debasement each year for at least the next 5 years as budget deficits will be roughly 10% of outstanding US Treasury debt. That's why, IMHO, gold will continue to rise vs. the USD.
Mostly left unsaid about the JPMorgan trading loss is the most crucial point, writes Sallie Krawchek: The size and risk of the trade was identified not by management, but by the press, and then it took weeks for JPM to put a number on the loss. And this from one of the savvier management teams. Regulators need to take note before heaping more complexity on an already incredibly complex business. [View news story]
Gold: A Seismic Move Is Coming [View article]
The Achilles' Heel Of The U.S. Economy [View article]
Gold: A Seismic Move Is Coming [View article]
Wall Street Breakfast: Must-Know News [View article]
Wall Street Breakfast: Must-Know News [View article]
Is The Latest Euro-Scare Now Behind Us? [View article]
No the scare is not behind us. Many will brush it over, but it will not go away until it is resolved.
The Economy Grows Under The Shadow Of Recession [View article]
The Achilles' Heel Of The U.S. Economy [View article]
To endow the SS system with $2 Trillion of additional funds in the form of US Treasuries would be nothing more than a "one time adjustment to interest earned" on the treasuries held in the SS Trust fund.
1. It would not find its way into SS recipients accounts for the next 21 years.
2. It would supplement 25% of the shortfall in benefits that will be payable in 2033
3. It would be used by the vast majority of recipients as income to purchase normal living expenses
4. It would not enter the stock market chasing yields in the interim
5. It would not be invested in anything such as commodities.
6. It's not designed as stimulus
7. It doesn't shift current demand or supply
8. It doesn't require a shift of consumption via higher FICA rates that lower take home pay
All in all.....IMHO....it's a pretty good solution.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
What do you think will happen the the EURO's that were used to bail out Greece if Greece goes down the toilet? They will vanish and where did they come from? Not from anyone's "paid in capital". They were created out of thin air.
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
There are certainly "speculators" in the Gold market. Thanks to vehicles like GLD and SLV anyone can play if they have a brokerage account. And all too soon, the paper "investors" will take their lumps just like the MF Global guys did.
The ETF's were set up by the large banks to facilitate their manipulation and enhanced control over physical stocks of gold and silver. You can rest assured that if the crap hits the fan, GLD will 1.) probably never cash out their holders of ETF shares or 2.) cash them out with USD and not physical metal. That will leave the bank holding the metal. That's why the ETF was set up in the first place.....to leave the bank holding the metal.
Why I Am Short Gold: 5 Reasons [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]
Where Are Gold Prices Headed: Flat, Down Or Up? [View article]