I don't agree with him a lot of the time (he is a deflationist), but he nails it today:
The femoral artery allegory is perfect.
These clowns are trying harder and harder to simply find more blood to pump into the patient, instead of repairing the damage that caused the bleeding, which makes sense, since they were the ones wielding the knives that inflicted the wound in the first place...
I am beginning to fear that this does not end until the population marches on Washington.
Buffett has changed the last few years. I really don't get how he can be the way he is after the success he's had.
Denninger may not be an inflationist short term, but I think he sees the writing on the wall. Most of what he says is 12 months out and he said he doesn't expect inflation in 2009, which may be correct. It could be years from now.
When I started investing in gold and silver stocks in 2002 I was convinced we were going to hitit back then, but somehow it never seems to get here.
What is this- bash buffett week? HaHa
I thought you guy's might show some appreciation! After all warren & pimpco both have been trashing the dollar since yesterday!
Like I said before, under normal circumstances this should have rallied PM big time! Something stink's in denmark here-& I don't think it is a "vegas queef"
I also heard on "bloomers" late yesterday that GS AND pimpco were dropped out of the fed's broker/dealer bond loop! I wonder what brought that on? Only saw headlines-no detail's, and have not made time to research. Anybody that know's detail's -feel free to elaborate.
The transmission mechanism of the money in our system will remain broken until the Fed decides to 'un'break it.
The fraud doesn't end where the linked article suggests. It is continuing due to interest on reserves (IOR) paid to the banks by the Fed with taxpayer money. The Fed is paying the banks interest on their excess reserves. The banks are making a killing on interest rate spreads by virtue of IOR on money they received during the bailouts from...you geussed it...the taxpayers. We not only paid for the bailouts, but we are paying the interest on the reserves from the bailout money that they have not lent back into the system. The banks have no incentive to lend right now.
I can't wait for 0% fractional reserve banking to come along in order to 'fix' this. After all, in our society, fixing something usually means compounding the problem.
This won't end until the banks are made whole again.
The result of the Reagan revolution, which had as it's basic tenet the voodoo economics desire to 'borrow from tomorrow to live better today', is coming to a head after multiple bubbles through the Reagan Bush Clinton Bush and now Obama terms.
The paradigm WILL change, or we'll cease to exist as a country.
If we change the paradigm and survive intact, at a lower GDP and standard of living, silver and gold should do VERY well...because to change the paradigm will involve massive inflation so we can handle both the credit crisis and debt load.
If we DON'T change the paradigm, we'll have a massive crash the likes of which the world has never seen, and likely be parcelled off in chunks or fought over by other solvent nations over a period of messy decades (we have nukes)..in this scenario, gold and silver should also do VERY well.
Either way, I recommend buying mostly silver in multiple forms; also some gold, in multiple forms; every chance you get, from here on out.
I just won 6 more bids for quarters and silver eagles on ebay, at 'reasonable' prices.
Apparently there is a 'way' (there always is). The problem is, there is so far no 'will'.
Until the 'will' shows up, all this talk from PIMCO (who have a sweetheart deal with the gov on bonds) and Buffet (who seems to be increasingly 'questionable'), all they say is nothing but talk, yadda, yadda, yadda.
And it gets increasingly meaningless to the Hoi Polloi with each passing day. That is the real danger; we lull ourselves (collectively) into oblivious ignoramity.