Staying busy livin'
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I saw them bring up a list of gold stocks this morning with a generic chart showing gold vs gold stocks.
Both are heading up strongly, but the point they were making was that the stocks/companies were somewhat leveraged and so going up faster percentage-wise although still lagging just below physical gold at the moment, but catching up fast.
You've probably seen this, but it's an interesting little study for anyone who might not have seen it yet.
THE GOLD/SILVER RATIO STRATEGY and THE CASE FOR SILVER
http://www.gold-eagle.com/editorials_03/sanders030703.html
The current ratio is 66.6
Far far above the historical mean and indicating that silver is severly undervalued relative to gold.
Two of the points in this study that I took away as very telling were that...gold is only 17.5 times less common in the earth than silver, AND, silver tends to get used up in industrial applications whereas gold remains around in the form of jewelry and in vaults and so never becomes more scarce like silver does over time.
The 17.5 to 1 ratio suggests that the gold/silver ratio SHOULD BE closer to that number than it is now at 66.6 to 1 in price.
It's also telling that silver at the current price costs more to mine than it's worth...so supply is diminishing while demand is growing.
Yeah, I was there. This is going to make that little downturn look like a walk in the park. LOL
I'm thinking along the same lines pretty much, except that it was released today that the Dems are getting some concessions from the Bush admin that are tweaking Wallstreet.
Bush has agreed in principle to giving the public an equity stake in AIG and it's subsidiaries in addition to it's assets, and apparently they're at least close to agreeing on a price of .35 cents on the dollar for the assets.
The only big sticking point I've heard about so far is the executive compensation limits. It's hard to believe that that's what the White House and the repubs would insist on as part of the deal as it would seem to be one of the least important monetarily but yet one of the most angering to the public who are adamant about paying these theives many millions out of the public coffers after creating this debacle.
So anyway, in light of the asset price and equity agreements that are tentatively a done deal, I think Wallstreet is going to continue to take stocks down further. A smaller up day in between wouldn't surprise me either though. That seems to be the pattern lately.
Oil had it's biggest one day move in history today. I doubt that will be met with anything but at least a small amount of profit taking. Besides the fact that it looks like today's price was at least partially artificially inflated by a short squeeze in the futures market. Options expired today and the shorts were scrambling to cover on the up move.
November and December futures are only in the range of $105 ish, and I've heard that a range between $110 and $85 will probably be about it for the rest of the year's trading in oil...barring any unforseen events of course. LOL
I can get really really pissed off about this stuff. So unless we want a full fledged knock-down/drag-out we better try to get back to the stock market.
I have no patience left with this stuff.
I just took physical possession of another 44 ounces of silver today that I bought last week. Now that makes me smile!
I guess you don't you have any problems with McCain now railing against the ridiculous golden parachute multi-million dollar payments to ceo's who've run companies into the ground, but when asked about his financial advisor Carly Fiorini's gigantic golden parachute payment that she got AFTER BEING FIRED and having laid off 20k workers while being accused of trading with Iran...all he can do is smile that evil liar's smile, and say, "I don't know the details of that story."
Well if you've been watching McCain's speeches, you have a rough idea of what Obama's plan is, only about a week behind in time frame and missing a lot of the more salient points and most of the detail and logic.
After he gets decked, he wakes up and thinks he thought of this stuff. And since the Obama haters never watch anything but McCain he knows they can be fooled into the argument you're now making.
So just review McCain's plan this week and you'll have a rough outline of what Obama's plan was last week.
I think you either aren't watching and listening or you just refuse to hear what Obama's been saying. Maybe a little less Fox analysis and a little more first hand viewing of what Obama's saying would help you get over this hump.
He's been many orders of magnitude more specific than McCain has been, and what he says makes sense.
It's been kind of like watching an old Ali boxing match. McCain comes out of the corner flailing wildly whenever the bell rings, while Obama watches him with a smile on his face and rope-a-dopes him until he's made enough stupid remarks and had to flip flop and apologize enough times that he can take aim and nail him with a good one to the gut, bending him over, then smack him in the chin with a good uppercut straightening him up again for the haymaker solid right cross to the chin that spins him around unconscious while still standing and then bouncing off the deck like a Douglas fir that just got cut off at the base.
McCain is a typical right wing reactionary who thinks saying something "decisive" immediately is the best thing to do no matter how stupid or premature it is.
Yeah, I see that! Wallstreet doesn't like those uppity Democrats demanding transparency and a fair price for those assets we're all buying.
Steve Forbes and a couple other right wing wallstreet types are whining that we should have to pay "fair value" for those assets we're buying in order to SAVE THE WORLD FROM DESTRUCTION.
God forbid the American people should make a buck on this deal. That wouldn't be fair.
Maybe we SHOULD just walk away and say, "Ok, there ya go. You buy em for that price richboy!" LOL
I don't think there's any way to even wager an educated guess yet as to which way silver's going to go near term.
Congress thinks they'll have a plan to submit to Bush by the end of the week, but...
the repubs are pushing hard for a deal which offers no transparency, assistance or protections for the taxpayer, and if they get their way we won't even know what we've paid or how much we'll be paying for it for years.
And Bush says he'll veto a bill that has anything other than just a strict wallstreet bailout at which point they'll blame that on the Dems for "playing games", aka trying to protect us at least to some extent and demand to see just what it is we're supposed to be buying and for what price, etc.
Bottom line...it's still a mess and will be for the rest of the coming week at a bare minimum. I'm considering silver as nothing more than a hedge/insurance policy so as to be covered at least a little no matter which way things go.
At this point, uncertainty is still the dominant factor. Seems like the more we find out, the more we realize we know very little about this deal. Bush said he planned on a sprint to the finish. This could be part of that final sprint.
Let's revisit this again at the end of the week. We'll either know more about the details of this deal, or we'll know that we'll never know about the details of this deal. Either way, we should start to get a sense of the endgame planned for us and the price tag attached to it.
The recipients will be all AMERICANS in the form of a "TAX" called inflation, exactly as it has been for the last 7 yrs.
All the mouthpieces for the administration and the big money interests are doing their damndest to prevent the word "inflation" from becoming the word of choice and the subject of discussion, and so far they're doing ok, but it's beginning to leak out in conversations from those with a bit more honesty in their character.
It's the 800 pound gorilla, the big white elephant in the room and everybody will figure it out sooner or later. I heard the first mentions of it tonight, and the speaker was adamant about it in his conversation with Ali Velshi of CNBC fame. Velshi did his best to derail that train of thought and change the subject but it was too late.
The other guy(can't remember his name) was IMPLORING people to not fall for the line that "your money is now safe, and not to worry", saying that the real thievery will come in the form of inflation and the destruction of buying power of the USD. He then begged his listeners to pull their money out of cash and to buy gold and foreign currencies before it was too late.
Too late is a relative word, and the inflation effect may in fact take a while to kick in.(How long does it take for the newly printed dollars to be created and flood the world?)
But too late can also mean...before EVERYBODY ELSE FIGURES IT OUT and drives the price of gold/silver/other currencies out of reach to gain any of the protection it might afford to those who act soon enough.
Dollar slips as investors weigh fiscal impact of U.S. rescue plan.(It's starting to sink in?)
By William L. Watts & Lisa Twaronite, MarketWatch
Last Update: 9/19/2008 2:13:00 PM
SAN FRANCISCO (MarketWatch) -- The dollar slipped against most major rivals
Friday, erasing sharp earlier gains, as investors pondered the possibly negative
aspects of a nascent U.S. government plan to take on the toxic assets plaguing
the financial sector.
News of the rescue plan had boosted the dollar in late North American trading
Thursday. Gains were extended in Asia and European action. The dollar index
(DXY), a measure of the greenback against a trade-weighted basket of six major
currencies, rose as high as 79.209, but was last trading at 77.840, down from
78.327 in late North American trading Thursday.
The euro was buying $1.4417, up sharply from its session low of $1.4150 and from
$1.4302 late Thursday. The British pound changed hands at $1.8358, up from a
session low of $1.7916, and from $1.8136 Thursday.
The dollar extended gains against the yen in line with rising risk appetite,
rising to 107.11 yen from 105.21 yen late Thursday. But it remained off its
Friday high of 108.00.
The Bush administration and congressional leaders have neared agreement on the
outline of a plan that would see the formation of a new government entity that
would take bad assets off the balance sheets of financial firms. Read about the
plan.
Click for Detail
But the massive size of the bailout will likely have a negative impact on the
U.S. fiscal position and even raises fears of an eventual U.S. sovereign
downgrade, wrote currency analysts at Action Economics.
"The dollar has moved to or near intra day lows versus virtually all major
currencies, as the foreign exchange market is apparently taking a bigger picture
look at the greenback," they said.
"Perhaps it is too early to speculate on the broader impact of a bailout, but at
this point, it looks as though the foreign exchange market's sentiment toward the
greenback has soured significantly in the past several hours," they added.
Wall Street welcomed news of the plan, with major indexes surging in afternoon
trading. See Market Snapshot.
Click for Detail
Degree of caution
Details of the proposal are due to be hashed out this weekend, and there's
potential for the plan to prove a disappointment, as well as uncertainty over
whether measures can be implemented in a timely manner as Congress prepares to
recess ahead of the November elections, said Neil Mellor, currency strategist at
Bank of New York Mellon.
Earlier Friday, a decision by regulators to shield bank shares from short sellers
spawned a rise in risk appetite, knocking down the Japanese yen and lifting the
U.S. dollar to its session high.
Battered financial stocks rebounded with a vengeance, pushing Asian and European
indexes sharply higher. See Asia Markets.
Click for DetailSee
Europe Markets.
Click for Detail
DynaMotive president belatedly reports stock sales
David Baines
Vancouver Sun
Wednesday, September 10, 2008
The president and CEO of a publicly traded, government-subsidized Vancouver company has belatedly filed insider trading reports disclosing millions of dollars in previously unreported share sales.
Robert Andrew Kingston of DynaMotive Energy Systems Corp. filed more than 200 insider trading reports in July, showing that his family trust, domiciled in the Isle of Man, sold $2.8 million worth of shares during the past five years. The reports also show that, during the same period, the trust acquired $1.6 million worth of shares.
The net result is that the trust grossed $1.2 million (before brokerage fees) in share transactions that were not previously reported.
Kingston did not make the filings until after I wrote a column on May 31 noting discrepancies in his share ownership, as reported in various company filings.
He attributed the discrepancies to "confusion" over whether the trust, Cape Fear Ltd., is legally required to report its trades.
I don't think there should have been any confusion. According to the B.C. Securities Act, insiders must disclose "any direct or indirect ownership of, or control or direction over, securities of the reporting issuer."
According to the company's latest proxy circular, Kingston held 330,958 shares in the name of Cape Fear Ltd. as of May 15. (According to the newly filed reports, that figure should have been 734,998.)
Cape Fear was described in the proxy circular as "an Isle of Man company [all of whose] shares are held by an arm's-length trustee of a discretionary trust of which Mr. Kingston is a beneficiary."
Kingston said he set up the trust several years ago when he immigrated to Canada to take advantage of certain tax provisions that were available to immigrants.
He said he has no control or direction over the DynaMotive shares held by the trust, but he confirmed that he, along with his family members, are beneficiaries of the trust.
On this basis, it seems clear that Kingston has an indirect interest in any and all shares held by the trust, and is therefore obliged as a DynaMotive insider to report any shares that the trust holds, buys or sells.
But dealing with Kingston is like dealing with mercury: Just when you think you have corralled it, it takes on a new shape and slips away.
"I'm a beneficiary, but I don't beneficially own the shares," he said, paradoxically.
He said that, for tax planning reasons, one of the conditions of the trust is that the shares of Cape Fear (not to be confused with the DynaMotive shares held by Cape Fear) cannot be returned to him.
He was unable, however, to explain why this renders him a non-beneficial shareholder. "It's a legal difference. I'll have to check with the trustees."
Due to these technical complexities, he said, there was "some confusion" whether trades in DynaMotive shares made by the trust are subject to insider reporting rules.
I say this is hogwash. Kingston contracts his services to DynaMotive through Cape Fear. In May 2003, for example, DynaMotive paid Cape Fear 330,880 shares for Kingston's services, in lieu of cash. It is specious to suggest that Kingston can escape his obligation to tell shareholders what he does with these shares simply by burying them in an offshore trust.
Also, for years, Kingston reported Cape Fear's holdings of DynaMotive shares (albeit erroneously) on SEDI, on the Canadian securities electronic disclosure database (SEDAR), and on the U.S. database (EDGAR). Why did he do this if he didn't think he had to? Even more critically, why did he now decide to report all his trades?
It is interesting to note that these previously unreported purchases and sales -- which added up to a $1.2-million payday for Kingston and his family -- occurred at the same time DynaMotive's business was going from bad to worse, when the optics of the president and CEO disposing of shares would have been terrible.
By the time I wrote my column in May, DynaMotive had spent more than $50 million constructing two plants in Ontario to turn wood waste into biofuel, and neither was operating.
Despite repeated claims that it had been booking sales, the company had no recorded revenues. Losses were horrendous. The previous year, it had lost $14.7 million, raising cumulative losses to $87.3 million. (It has since lost another $5.8 million.) Losses were being exacerbated by large and growing management salaries and bonuses.
The previous year, Kingston had earned $977,745 in salary and cash bonuses, an increase of 23 per cent over the previous year, while chairman and major shareholder Richard Lin made $632,659, an increase of 17 per cent.
To finance these losses, the company was printing shares like crazy, causing massive share dilution.
During the previous three years, the company's outstanding shares had more than doubled to 208 million, and the stock price has crumbled from a high of $1.72 in March 2006 to a mere 22 cents.
And it isn't just DynaMotive shareholders who are suffering. Taxpayers, through the federal government's Technology Partnerships Canada, have committed $7.5 million to help pay for the Ontario plant.
"The only mitigating factor that I could find was Kingston's stock sales, or lack thereof," I stated in my column.
According to his original insider reports, he had acquired a total of 969,409 shares by May 2006 and hadn't sold a single share since then.
Based on these filings, it appeared he was "sitting on his shares like a good mother hen," I noted.
How wrong I was.
After I questioned his accounting, he belatedly reported more than 225 transactions. The B.C. Securities Commission charged him a late filing fee of $50 per transaction, for a grand total of $11,400.
That may not -- and should not -- be the end of it.
I think commission enforcement staff should make it clear that this sort of offshore dipsy-doodle won't be tolerated, and ensure that public shareholders get the information they need to make informed investment decisions.
dbaines@vancouversun.com
© The Vancouver Sun 2008
I've been listening to all the talk surrounding this bail out and there's only one thing we know for sure...that it'll be American taxpayer who'll be on the hook...IF
I say IF, because it's very possible they won't actually be able to work out a deal in congress this weekend.
What we don't know is how the whole thing will be structured...
What will we be paying for bad paper that apparently nobody wants to pay anything for at the moment in the private market. 10cents on the dollar?/ 80cents on the dollar?
And Mark Haines of CNBC brought up an excellent point...namely that MOST of these MBS are held by foreign banks and sovereign wealth funds! Are we, the American people, going to be bailing them out too? It sure sounds like it, but who knows? I'm sure that'll be a point of contention in the negotiations this weekend in congress.
Then add all the things you mentioned and the bottom line is...we don't know shit yet. We don't know if it'll work or how much it'll cost. We don't even know if it'll happen at all.
It ain't over yet. Not by a long shot.
Also, just heard a gold trader talking about the inflationary effects of this and a few other things in the pipeline. But he's talking about it having a serious inflationary effect in 2 to 3 yrs down the road.
So your also probably right about the moves in the PMs being incremental, with lots of trades to be made between now and then. Of course we're assuming that the market has been stabilized when discussing an orderly move upward for gold/silver. That's far from a given at this moment.
Cox has said for quite a while that he's leaving the SEC with the Bush admininstration. YAY!
Talk of Naked shorting has quickly morphed into just shorting and it's already been squelched again from the looks of it.
Lot's of institutional resistance to reinstating the uptick rule. Hmmmmm...wonder why? It worked for 69 yrs but they're claiming the logistics of reinstating it would be "really hard". LOL Cramer said we'd be used to it again within 24hrs and just threw up his hands and rolled his eyes.
If/when they don't have a plan ready to go this weekend or by Monday morning...we're in for another "interesting" week.
OOooops there goes, another rubber tree...
OOooops there goes, another rubber tree...
OOooops there goes, another trillion rubber tree plants.
But we've got HIGH hopes...
we've got high hopes...
High, apple pie, in the SKY hopes.
Silver/Gold should be hitting all time highs as soon as the true cost of this new extortion plan slowly sinks in, and it makes me wonder...
will there be any money left to invest in alternative energy development projects and infrastructure rebuilding by the end of this year?
I can hear them now..."Well, we would have liked to start doing this, but, unfortunately...there's no capital available to do it now. Maybe in 2012 we can revisit the idea."
It just makes me sick to my stomach to see/hear these wallstreet peckerwood talking heads whining like there's no tomorrow about how naked shorting is killing their babies.
Until their money was getting stolen they wouldn't even so much as admit that naked shorting existed, let alone was destroying legitimate companies, and the jobs and lives that were being destroyed along with them.
When and/or if any of the theives ever get prosecuted, I'd like to see just which companies they're accused of naked shorting.
And by the way...they owe me roughly $32k bucks for past abuses, and I don't want to hear anything about grandfather clauses, statutes of limitations, or "we don't have the resources to prosecute all of them" bullshit either.
I want to see them all hunted down like Nazi war criminals for financial terrorism against America. I don't care if it takes 50 years to get them all. I want them to be looking over their shoulders, dreading every phone call, attending endless trial dates for the rest of their miserable little worthless lives.
We need to get you back over here posting pictures of half naked women and quips full of sexual double-entendres and comments implying that "some posters here" are closet homos/lebians.
Then we need to get you laid!
You've got to wean yourself off those venomous political arguments at 2 o'clock in the morning or you're going to go into cardiac arrest or have a stroke!
This is kind of amusing in a sickening sort of way...I read the press release you posted and excerpted below and decided to check the REGSHO list to see what was happening.
What I found was 20 new stocks ADDED to the list today and 12 REMOVED from the list today. In other words....the list is still GROWING, and nobody is apparently too worried about covering any naked shorts.
I suspect that this is because either the existing naked shorts are "grandfathered in" like they were when the regulations first came around in 2004 or they just don't give a shit because they know it's another toothless lion.
I posted the link to the Sho list at the end of this message just in case anyone wants to take a look.
FOR IMMEDIATE RELEASE
2008-204
Washington, D.C., Sept. 17, 2008 — The Securities and Exchange Commission today took several coordinated actions to strengthen investor protections against “naked” short selling. The Commission’s actions will apply to the securities of all public companies, including all companies in the financial sector. The actions are effective at 12:01 a.m. ET on Thursday, Sept. 18, 2008.
http://www.buyins.net/tools/short_list.php?dys=%3E12
Today is the biggest one-day gain in GOLD in history! Flight to quality mega-move in progress.
With this many players moving into gold and away from equities in panic mode, I'm thinking this is going to be an extended move up just out of momentum if nothing else.
At the very least it's heading for a stabilization price with little chance of a sharp drop coming anytime soon.
Funny...9/11 was the low for silver at $10.15
Imagine that! LOL
BTW...I'm not too broke to keep up my premium iHub membership. I just hadn't been posting much and didn't think I would be anytime soon.
Then the shit hit the fan and here I am posting my butt off again. LOL
I still have 3 more posts after this one left for today and I've said everything I can think of saying already anyway, so it's no problem yet.
HI HO SILVER! AWAY!
RE: The auto industry...I'm not sure why they're even worried. I know Obama has already said he'd commit to helping them retool for production of the new elec/hybrids in order to get Detroit jobs going again.
Don't know if McCain has any plan or commitments to do anything like that. I don't recall ever hearing him talk on the subjects of retooling or bailing them out specifically.
Could be! Things are looking generally like a capitulation sell-off that's coming to an end with a short-covering rally soon to ensue. They're even beginning to talk like that on CNBC, not that that's the best source of any kind of information.
I do think that your little CTGI probably got shorted to the extreme on that last spike and might be a good candidate to make a small bet on.
I can see a short term short covering rally being a strong possibility here across the whole market. Unfortunately I don't think we're anywhere near the end of this mess and I suspect that after a short rally, the shorts will move back in and have a whole new time frame to use to short things down further.
I still believe that the whole thing hinges on the housing crisis, and until that begins to resolve itself positively that we're in for a rough and bumpy ride.
It's tempting to see each new development as an end to this but underlying it ALL is the mortgage crisis, and that's still in freefall mode.
At best I'd consider a flip trade on anything right now, but I know you. You'll go long and hold forever. LOL
Be careful!
PS: I almost bought SLV yesterday and was ready if the Fed had decided to cut rates again, but when they didn't I aborted. Imagine now where SLV would be if they had cut rates, AND announced a bailout of AIG!!!Just a thought....
I'm running out of posts already!!!!AAAAAAHHHH!
DISCLAIMER!!!---- WTFDIK! Never take advice from anybody who consistently loses his ass in the stock market.
Correction to my reply to your explanation of the banks knowing that the collapse in Silver was imminent...
Barnie Frank(D) just reminded me on CNBC that the commercial banks were much more regulated than the investment banks which were completely or very lightly regulated, so their books wouldn't necessarily have reflected the same numbers as the investment banks books would have.
The biggest point he made though was that it's the MORE REGULATED COMMERCIAL BANKS that we're now having to turn to to bail out the UNREGULATED INVESTMENT BANKS.
A very important point that shouldn't go unmentioned in all this mess and something Mr John(The Deregulator)McCain would do well to "study".
Not that this difference takes anything away from the scenario you proferred. It's still by far the most plausible explanation out there imo.
And the fact that the banks are far and away the biggest traders in the comex precious metals markets only lends more credence to it.
LMAO...yeah, it would take many many thousands of shares of PNMS to buy a roll of that DELUXE toilet paper.
And I hope that was a privately funded research study. LOL
RE:PM
If there's one thing I think I know about you, it's that you understand the old adage...adapt, migrate or go extinct, and that you have exactly what it'll take to survive this and anything else for that matter.
I guess the same advice would work in this situation as the last...Relax, take a deep breath, recoup your thoughts, tighten the laces on your tennies and get ready for the sprint to the finish. It ain't over yet. Not for you anyway.
I see a long and winding, and very interesting road still ahead for the Grizz. LOL
My mood is a little better I guess. Must be my audacious nature once again seeing a little hope for us to come out of this mess better and stronger for the struggle, and beginning to believe that change is once again actually possible after all these years. :D
The $250k mark is for individuals, not couples.
And there's a HUGE misconception/illusion that the pubs have perpetrated on America as far as the US having the 2nd highest corporate tax rate in the industrial world.
It is high, for those who actually pay the taxes. Unfortunately, better than half of them have found ways to off-shore their money and don't actually pay much if any taxes.
I don't know the exact figures, and I don't know if anybody does, but I'm sure that if all U.S. corporations had to pay a fair tax that the overall corporate tax rate could be cut by 1/2 and we'd still have more revenues coming in.
They would definitely whine about it and try to foist it off on the little guy, but REAL COMPETITION would actually kick back in and they'd be limited to what they could charge or they'd price themselves right out of the market altogether.
Besides...they never pass the savings on to the little guy when their profit margins rocket because of not having to pay taxes, so we're not seeing any benefit from it anyway. That's another part of the illusion of all this.
It's strange and ironic that the corporations are actually voting against THEIR OWN LONGTERM self-interests by not paying taxes to support the economy. They use the infrastructure more than anybody with their trucks and planes, and they take money out of the pockets of the very consumers that buy their products on top of that. It's the same old "short term self interest" aka personal greed, that is keeping us from propering as a whole nation, together.
A little short term pain for them will do them and us a lot of good in the long run. They just can't see the forest for the trees as their vision is tainted by short term greed.
Now what's this "estranged wife" stuff all about? She's just away temporarily on some job thing right? Or is something else going on?
Now the logic behind that scenario is impeccable. It covers all the angles with plausible explanations of all the moves we've seen and the news that's broken.
And of course the banks knew this was coming before hand. All they had to do was look at their own books and know that all the others were in the same boat.
Seems that the only question that remained was the exact timing of it all to come crashing down.
I don't know where that came from but it's the best, most logical and most complete explanation I've heard. I think it's probably right on the mark.
And I don't know how much it really matters this time around, but we DO have that seasonal thing going for us with silver too. At least the chartists will be looking at that if nothing else.
Goldman Sachs is down 15%. Morgan Stanley is down 22% inspite of releasing early earnings report with positive earnings. AIG down another 45%
Silver is up...for the moment.
Everything is trading like subpenny pinksheets now. Wow! What a mess.
May be a shortcovering rally on SLV/GLD in the face of further dollar dilution/liability and even the new delivery rules about to take effect?
Damn! Just caught the tail end of the CNBC piece on short and naked short selling. It's now a crime to "fail to deliver".
Hmmmm...should always have been a crime. And NOW they're admitting it happens. Gee, just a little behind the curve aren't they.
Cramer is suggesting we try the uptick rule again just for laughs since 1/2 the govt's balance sheet is now at risk in Fannie and Freddie. Of course the hedge fund guy is all against that. LOL
Man! Greed begets more greed. It's never enough for these guys. They won't be happy until all of us AND the US GOVT is bankrupt and they have it all stashed in their tax-free offshore accts.
We have to stop these guys!
I think the answer to all this lies not only in cutting spending but that in conjunction with raising revenue is imo the COMPLETE answer.
The pubs want only to cut spending on the social programs and still seem to believe that the 'trickle down' form of voodoo economics is the answer.
Anyway, the "raising revenues" part of the equation is what Obama can offer. And there are a few ways to do that.
Actually creating real jobs, and closing loopholes that only the rich can take advantage of are the two biggies that come to mind right off.
The trickle down theory has proven itself to be an illusion. It's had plenty of time to prove itself and it's a complete failure as we can all attest to now.
It worries me that even exceptional people like you have become so despondent and cynical about the whole process that you're ready to just throw up your hands, give up and walk away from the process. That's exactly what the neo-cons would like to see you do. Why? Because they ALWAYS VOTE, and if we don't they win by default. We have to keep trying even if it seems hopeless sometimes.
Hang in there buddy. We still have a chance to change things, and it's almost here now. Relax, take a deep breath, recoup your thoughts, rest up and gather your energy, tighten the shoelaces on your tennies and get ready for the sprint to the finish. It ain't over till it's over.
Thanks...I caught just the tail end of a blurb on that and was looking for the story but hadn't found it yet.
I'm going to take a close read on that and see if it looks like it's real and has some teeth.
The first thing that strikes me is the timing of it. After the market plunges and the economy is in the most dire straights it's seen in almost 100yrs.
In other words....a very easy time to cover your shorts. Better late than never though I guess...if it's real. We'll see.
I consider you a good friend too...and in the spirit of not messing up the other board with politics I came over here to say a couple of things....
first, I see you're not likely voting for McCain and definitely not voting for Obama so I got curious to find out just who you ARE voting for if anybody. Barr? Nader? ???
And the only other point I wanted to make is...I've been watching and listening to this most important election in our lifetimes VERY CLOSELY AND CAREFULLY. Much more than most I'm absolutely sure.
I support Obama without reservation, but that's not based on some blind loyalty to the Dem party or a blind hatred of all things Republican, McCain or Palin either.
I support him because what he is saying makes sense to me. Because I believe he means what he says. Because I think he can make these things happen and will make them happen. Because he's really, honestly on the side of the people and not big business. And because we need somebody like him NOW.
I hope eventually you come to see what I'm seeing in him. I didn't come by my position lightly or automatically.
Anyway...I'm glad you're sounding like you're going to take a break from the political boards. Doesn't seem like anything is getting accomplished over there. People are just screaming at each other and not hearing what the other is saying so it's really a pointless exercise that will only get you a headache or god-forbid, another heart attack.
I'm all for borrowing a few bucks to lend to the American people themselves for a change.
When you give the middle class a tax break, they spend it...here.
That's good for the economy, including the EMPLOYERS who now have someone to sell their overpriced crap to.
It's good for the economy because it CREATES JOBS because the middle class will have a few bucks to spend...HERE.
To spend a few billion to create jobs is good for the economy and EXPANDS THE TAX BASE...this RAISES REVENUE for the govt.
When you spend a dollar to create jobs you get paid back $4 over time. When you spend a dollar to fight a war, you've spent a dollar...period. It's gone. It's a one way street in the other direction.
And as for McCains "lets create a commission to study the problem" bullshit...He sat on the oversight committee for YEARS AND YEARS and calls himself a DEREGULATOR. He doesn't need a study to find out how we got here. HE PUT US HERE.
I just saw a piece on the tele about it. The loan is at 11.++% interest though for a maximum of 2 years, so as to light a fire under their "assets" and get the show on the road and not dilly dally too long in the "recovery mode".
Let's see...11% on $85 Billion is....OUCH!!!
I'll bet their "assets" are already SCHMOKIN'!!!
Not too much different from the Fannie/Freddie Deal...the taxpayer will supposedly get a 10% return on that money too. Let's see if that ever really materializes.
I suppose this is all better than the alternative of letting them fail outright. I just hope they take this seriously enough to do more than McCain suggested which was to kick it down the road a few more years with yet another "911 style commission to STUDY THE PROBLEM". He's such a lame old putz.
On Ebay I can get at least $35 bucks for this one, and about $20 for a regular non-proof round, plus $3 or $4 for shipping(real cost about $1.15)
:D
Well, nothing left to do marketwise today so I guess it's time for my Birthday nap. Besides I'm running out of messages I can post, and I might still have some gems of wisdom I'll need to impart later on today!!!!!
Too bad I don't have a PREMIUM SUBSCRIPTION anymore. LOL
Fed leaves rates unchanged. Bad for silver, good for the dollar. But the pressure is still on for them to drop the rates so I'm not making any bets just yet.
I was ready to do a quick flip buy on SLV if they'd lowered by 1/2 point but aborted that.
Bernanke is doing his best to defend the dollar, FINALLY! No direct bailout of AIG...YET, but still printing money and dumping it into the market. $70 billion more today.
Yeah, that's a proof bullion round. Picture taken with the "cameo" lighting technique highlighting only the raised devices and putting the mirrored relief part of the coin in darkness.
Printing money as fast as they can. And I love the part in this article about the "regularly scheduled $20 Billion" and use of the words "temporary reserves". ROTFLMAO
AP
Fed pumps $70B into nation's financial system
Tuesday September 16, 9:57 am ET
By Jeannine Aversa, AP Economics Writer
Fed pumps $70 billion into financial system to ease stresses as markets tumble
WASHINGTON (AP) -- Urgently trying to keep cash flowing amid a Wall Street meltdown, the Federal Reserve on Tuesday pumped another $70 billion into the nation's financial system to help ease credit stresses.
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The Federal Reserve Bank of New York's action came in two operations in which $50 billion and then another regularly scheduled $20 billion were injected in temporary reserves.
The maneuver takes place as Federal Reserve Chairman Ben Bernanke and his central bank colleagues prepare to meet to decide their next move on interest rates and conduct a fresh assessment of the country's financial and economic troubles.
Some believe the financial system turmoil raises the odds the Fed will cut rates. Others still predict the Fed will hold its key rate steady at 2 percent.
In the last few days, the American financial system has been badly shaken as bad bets on dodgy mortgage-backed securities claimed more Wall Street giants.
Lehman Brothers, the country's fourth-largest investment bank, filed for bankruptcy protection. A weakened Merrill Lynch, deciding it couldn't go it alone anymore, found help in the arms of Bank of America. Now, the insurance giant American International Group is dangerously wobbling. Against this backdrop, Wall Street on Monday plunged 500 points, the most since the September 2001 terror attacks.
The cash infusion Tuesday was designed to help ease a spike in the overnight lending rate between banks. A sharp rise in such borrowing costs makes banks reluctant to lend to each other and to hoard cash, worsening already tight credit conditions. Harder-to-get credit has crimped spending by consumers and business, a factor in the slowing economy.
To help grease the financial plumbing Monday, the Fed pumped a total of $70 billion into the system through open market operations.
I think I'd rather put the gas and the chainsaw on Ebay. Sounds a lot easier.
And the gas/oil for your furnace might be a lot cheaper soon than we were thinking earlier. The coming global depression will really reduce demand. LOL
I've looked at that site many times. They have some fantastic pictures archived there and I've used a few of them as wallpaper for my computer.
Really puts things in perspective, and often times reminds me of the song Dust in the Wind.
All this "turmoil" really doesn't even amount to the proverbial "tempest in a teapot". LOL...Not even "the drop in the ocean".
But it gives us something to do while we're stuck here on this speck. LOL
Well...I've been up most of the night and I'm getting a bit sleepy. I'll be checking later to see how this all shakes out today.
Have a good one and I'll see ya'll latah!
:)
Well, if the Fed drops the rate by a half point, the USD will tank and SILVER/GOLD should, I say SHOULD, rally.
It's gonna' be another "interesting" day.
IT'S MY BIRTHDAY TODAY.
I think you guys ought to get together to pony up and get my premium iHUB subscription re-instated.
You can't have a head mod with a crappy old free acct. It's unseemly.
That whole "I wear the pants..." argument is best played out BEFORE the wedding!
Better yet...just don't get married period! LOL