Everything Is Getting Killed!!!!!

[rzero]

Re: Everything Is Getting Killed!!!!!

Thanks for those quotes GRG. People give him high praise for stopping the commodity inflation of the 70s, but he or no subsequent central banker has had the guts/brains to stop asset inflation.

[rzero]

Re: Everything Is Getting Killed!!!!!

You can begin personally dismantling regulation tomorrow morning. Tear down the speed limit signs on your own street, and disable the flashing lights near your children's school.

These are in the public domain. Banks should be part of the private sector. How come there has only been a crisis in the monetary sector? Maybe because there is a central governing body controlling the supply of money! How come there hasn't been a laptop crisis where way too many and very poor quality laptops were sold all around the world, causing a catastrophe? Should we design a mammoth regulation system for laptop manufacturers to prevent this from happening? The fraud and insanity is the result of an over-expansion of the money supply. This causes an artificially high demand for investment, causing an artificially low scrutiny of the investments by investors.

An inflationary monetary policy gradually causes an economy to go insane. All you hear now is, "We need regulations to prevent banks from making loans that can't be payed back." Think about how strange this sounds. Do we need laws to prevent companies from throwing perfectly good inventory in the dumpster? Laws to prevent people from flushing their jewelry down the toilet? Don't you wonder why all the banks in the world decided to make bad loans at the same time?

[thriftyandboringinohio]

Re: Everything Is Getting Killed!!!!!

These are in the public domain. Banks should be part of the private sector. How come there has only been a crisis in the monetary sector? Maybe because there is a central governing body controlling the supply of money! How come there hasn't been a laptop crisis where way too many and very poor quality laptops were sold all around the world, causing a catastrophe? Should we design a mammoth regulation system for laptop manufacturers to prevent this from happening? The fraud and insanity is the result of an over-expansion of the money supply. This causes an artificially high demand for investment, causing an artificially low scrutiny of the investments by investors.

An inflationary monetary policy gradually causes an economy to go insane. All you hear now is, "We need regulations to prevent banks from making loans that can't be payed back." Think about how strange this sounds. Do we need laws to prevent companies from throwing perfectly good inventory in the dumpster? Laws to prevent people from flushing their jewelry down the toilet? Don't you wonder why all the banks in the world decided to make bad loans at the same time?

I see your points, but the examples aren't a good analogy. You are right that bad loans in-and-of-themselves pose no danger. It gets more complicated when the bad loans are rated AAA and then sold to others, until they eventually get to your mothers 401K where they finally become worthless on her books and she takes the loss.

[due_indigence]

Re: Everything Is Getting Killed!!!!!

Are we kidding ourselves that there still exist asset classes with discrete risk characteristics? Everything goes up, then everything goes down. Has a sea of dollars blunted such silly distinctions? Or is it for Americans, a bi-polar investment world: the dollar and everything else?

[LargoWinch]

Re: Everything Is Getting Killed!!!!!

He thinks the problem is lack of regulation, like many iTulipers. Wrong.

Your statement here rzero is simply misguided, without basis and wrong.

[grapejelly]

Re: Everything Is Getting Killed!!!!!

Are we kidding ourselves that there still exist asset classes with discrete risk characteristics? Everything goes up, then everything goes down. Has a sea of dollars blunted such silly distinctions? Or is it for Americans, a bi-polar investment world: the dollar and everything else?

horse racing does not have any correlation with other investments...

[Verdred]

Re: Everything Is Getting Killed!!!!!

horse racing does not have any correlation with other investments...

Well, i would want to see the numbers. Gambling could be up, maybe not vegas style, but certainly lottos and horses (i.e. local), as desperation goes up.

[sunskyfan]

Re: Everything Is Getting Killed!!!!!

If you want "free market" banking you must give up FDIC insurance. Oh, that is what an investment bank is ... until last year when THEY FAILED entirely. Perhaps the founding fathers had all this right. Only the government gets to create money.

[Dr.No]

Flashback to January 21st 2010:

Flashback to January 21st 2010:

Gold up to $1227, then - disaster! - back to between $1034 and $978! (Maybe):

http://www.facebook.com/photo.php?pid=3095034&id=140608094660

I'll be buying back my trading position a bit above $1034 if we get there, and if not, on a clear break back above the 50 day moving average (currently at $1134). As always, I do not trade my long term investment position in gold.

[Mashuri]

Re: Everything Is Getting Killed!!!!!

If you want "free market" banking you must give up FDIC insurance. Oh, that is what an investment bank is ... until last year when THEY FAILED entirely. Perhaps the founding fathers had all this right. Only the government gets to create money.

If you actually believe our investment banks were operating in a free market, you're fooling yourself. Look no further than Panama for the closest example of a free market banking and monetary system. Their constitution forbids any government controlled currency, they have no central bank or safety nets like FDIC and no capital controls. Guess how many banking and/or financial crises Panama has experienced since its establishment in 1903? ZERO! That's a way better track record than the U.S. / Federal Reserve.

[jpatter666]

Re: Flashback to January 21st 2010:

Flashback to January 21st 2010:

I remember that. Nice call, we'll see how the followthrough goes.

[rjwjr]

Re: Everything Is Getting Killed!!!!!

While everything blows up and changes direction around us, EJ sits atop 30% gold and 70% long UST's looking like an unflappable genius.

The rest of us busy ourselves with short term trades, timing guesses, and panicked research in an attempt to maximize our returns. I wish I was currently simply 30%/70% and watching this carnage in commodities, oil, stocks, and dollar strength from the sidelines.

In my effort to maximize my gains, I'm breaking EJ's number one rule of investing...DON'T LOSE MONEY.

Is there such a thing as Investors' Anonymous for an idiot like me that can't quit "tweaking" his portfolio? :cool: My name is rjwjr and I have a problem. LOL

[e_goldstein]

Re: Everything Is Getting Killed!!!!!

I'm taking a friend of mine to the coin store tomorrow for his first precious metals buying trip. At these prices, I'm tempted to buy (it's been about a year since I purchased).

Of course, at these prices, it may be hard to find physical metal.

[cjppjc]

Re: Everything Is Getting Killed!!!!!

While everything blows up and changes direction around us, EJ sits atop 30% gold and 70% long UST's looking like an unflappable genius.

The rest of us busy ourselves with short term trades, timing guesses, and panicked research in an attempt to maximize our returns. I wish I was currently simply 30%/70% and watching this carnage in commodities, oil, stocks, and dollar strength from the sidelines.

In my effort to maximize my gains, I'm breaking EJ's number one rule of investing...DON'T LOSE MONEY.

Is there such a thing as Investors' Anonymous for an idiot like me that can't quit "tweaking" his portfolio? :cool: My name is rjwjr and I have a problem. LOL

My name is cjppjc, I too have a problem.:mad:

[Serge_Tomiko]

Re: Everything Is Getting Killed!!!!!

If you actually believe our investment banks were operating in a free market, you're fooling yourself. Look no further than Panama for the closest example of a free market banking and monetary system. Their constitution forbids any government controlled currency, they have no central bank or safety nets like FDIC and no capital controls. Guess how many banking and/or financial crises Panama has experienced since its establishment in 1903? ZERO! That's a way better track record than the U.S. / Federal Reserve.

I like Panama, don't get me wrong. But, they use the dollar. If for some reason that stops being feasible for them - what next?