I didnt say it was here, I said it was near. Shorting paper gold is an easy way to raise liquidity, which is being pumped into the stock markets. Ive seen this game many times since 2000, the reason gold has become so volatile the last ten years is central banks dont have the bullion they need to defend fiat currency and keep gold prices stable in dollar terms. These massive shorts at key support levels dont even make sense from an investing perspective, who would sell thousands of contracts at one time if they really wanted to get the best price (one contract = 100 ounces). They are incredibly transparent and are intended to break support in a cascade of stop loss triggers. But once all the liquidity has been squeezed out, the PMs will rebound sharply and you amateur gold shorts will be left holding the bag. BTW unless you are an HFT or a bank with sophisticated equity at risk computer programs monitoring your assets by the microsecond, you have to be an idiot to buy stocks at these prices.
These calls for lower gold prices simply mean GS hasnt been able to cover their gold short. Once they do they will become gold bulls. Dont listen to these MFers, they are the lowest form of #$%$ there is.
Very hard to predict and very difficult to know how to protect your assets. Prices for all asset classes are very distorted thanks to QE. One thing I do know is the FED is desperate for inflation and scared sh*tless of deflation. There is only one asset class that goes up in both scenarios, and that is GOLD.
Is near. As anyone who follows the physical market knows, bullion supplies are tight and large quantities of bullion are difficult to acquire. However if you are interested in buying small quantities, the sheople, who always buy high and sell low, are dumping, so its worth a trip to your local coin store. When I was there last, a bunch of Asians were buying large quantities of gold and silver, while the locals were cashing in grannies silver dollars and griping about food prices.
FED and Treasury to transfer all US gold reserves to US Mint for sale to public at token price. Treasury admits 1933 recall of gold coins monumental mistake as barbaric relic has no value. BTFATH!!
Just look at CSCO's latest earnings report, does that look like economic growth or a recovery for that matter? Just what does matter to the stock market these days - is it just QE?
Im crying for America today
I must be getting old. I guess shes not bad for an old crow. She was just on Bloomberg slamming Nouriel Roubini for being bearish. You know the party is not over Liz Ann. Oh jeez, now she's saying as long as real estate price appreciation is greater than mortgage interest rate increases, real estate is buy. Good luck with that one babe. There is no way the banks want to make 30-year loans in the face of rising interest rates, especially now that they cant dump them on the GSE's. Same situation as the late 70's, and thats why the GSEs were created. Look how well that worked out. How quickly they forget. Oh well, what do you expect from a bank analyst? Is it just me or do Liz Ann and Janet Yellen have the same jowels.
Im crying for America today.
Is close to all time lows. If one counts all the workers who have stopped looking or otherwise dropped out the labor force, the UNEMPLOYMENT RATE would be 11.3%.
The question is do the norms apply in this market? Despite the assertions of the FED nominee to the contrary, any reasonable person with a modicum of finance expertise knows the current stock market appreciation is simply corporate malinvestment of QE (leveraging, refinancing and most egregiously stock buy-backs, which temporarily mimic earnings growth by boosting EPS via the denominator) and a desperate reach for yield by money managers (think about the conundrum faced by pension funds, annuity (insurance) companies, etc, who have to grow their funds to meet mandated payouts). Current stock prices are not supported by the fundamentals, and after today's testimony I realize the FED sees everything through rose-colored lenses, they are eternal optimists (Im thinking that is a requirement of employment) and only recognize failure of their polices after a disaster. And so the question is, IS THIS TIME DIFFERENT? No I dont believe so, QE exhaustion is near, soon it will be apparent to even those in the rabbit hole that current stock market appreciation is bottom line driven. The market will correct severely and we will enter a prolonged period of extremely low interest rate stagflation analogous to the late 1930's and 1940's. Todays 10-year will be a strong buy in the rear-view mirror.
IMHO -Lord help us all and God bless America.
What I believe is lost on the average American and probably most of the brain-dead zombies who comprise our wonderful congress, is that loans allowed to "roll off" the balance sheet, i.e, mature, are an indirect and probably illegal TAX, as the resulting payouts are transferred to the Treasury, having been previously acquired by issuance on of new money. This is a tax because it increases the money supply and therefore reduces the purchasing power of your earnings and savings (it would not be a "tax" if the FED at some future date were to sell the bonds and retire the money originally issued to buy them). In a similar and more egregious manner, MBS purchases by the FED, which have bailed out the too big to fail banks, are probably worth considerably less than par, maybe pennies on the dollar. I believe these will allowed to quietly go away, what little money acquired at maturity will of course be transferred to Treasury (this is already happening and ironically has "reduced" the budget deficit) - but people please remember this is your money being used to do this. You are being fleeced, the FED is picking your pocket!!
The FED should not be watching the markets at all - it is not their responsibility, and because they have cow-towed to the market they are now painted into a corner.
Unless you are living in a cave you know prices for everything are going up despite the FED'S insistence that inflation is low to non-existent. Walmart missed earnings for crying out load, how does that happen?? Their customers are all SNAP recipients!! HINT - THEIR PURCHASING POWER IS GOIING DOWN!!! Chained CPI, that is what the FED means by transparency??? Boy we are all in trouble. Personal anecdote - I dont regularly service my car so the last time I bought motor oil was a few years ago and it was about $2 qt on sale. Yesterday the cheapest I could find was $4.99/qt at Autozone - yes we have no inflation.
ITS IMPORTANT TO DETECT ASSET BUBBLES WHEN THEY ARE FORMING - AND SHE DOENST SEE ANY NOW!!!!!!! ARE YOU KIDDING ME!!!!! WOW - well neither she nor her buddy BSB saw the real estate bubble in 2007.
Seriously, its time to end the FED. Anyone that tries though will probably go on vacation and never come home. Look at Ron Paul, they try so hard to brand him as a crackpot, and as much as he would like to end the FED yesterday, he is all words.
The new era of FED transparency is nothing more than a concession to reality, the only monetary policy tool they have left is "good cop / bad cop" jawboning. The next 10 years as baby boomers retire en-mass are going to be really ugly - QE to the moon. The FED might taper a few months just to send a signal but they will continue to subsidize the government for a long time to come via QE, the alternative is massive civil unrest like Greece but worse. I dont know when the market bubble bursts but when it does watch out below. If you have made money the last few years its time to convert those gains into real assets (i.e., rental property, gold, silver, a new Ferrari, etc)
Not sure what you mean, GLD is a proxy for gold. Gold didnt fall for 20 years, after peaking in 1980 it was up and down, like the Federal deficit during the productive years of the baby boomers. Since 2000 It has been going up in relation to the size of the Federal deficit, which will hit 20 trillion in a few years. The only reason it has momentarily paused is because the ANNUAL budget deficit has been going down since the Tea Party forced sequester down the throat of the current administration earlier this year. All bets are off in January, when the debt celling is permanently lifted. LISTEN AND LEARN.