Posted on 10/07/2005 10:49:13 AM PDT by thinking4me
(10/07) A High-Risk Market ...... Even before the twin hurricanes the consumer savings rate had turned negative, household debt was at record highs and home owners were using soaring home prices as huge ATM machines yielding hundreds of billions of dollars in cash. With housing prices starting to soften, energy prices still high and real wages under pressure, consumers’ ability to spend seems severely restricted in the period ahead. These trends have been further exacerbated by the two hurricanes that have created negative domino effects throughout the economy. So far consumers have felt the impact of higher gasoline prices, but with the coming of cold weather they will be facing heating costs that are estimated to be up by about 70% from last winter. At the same time minimum monthly payments on credit cards are rising while interest rates on the cards are also going up. All of these factors have resulted in a sharp drop in consumer confidence. The continuing problems in Iraq and Iran as well as the decline in the President’s approval ratings have also added to the general malaise. History strongly indicates that such low approval ratings and bull markets are usually not compatible.....
http://www.bloomberg.com/apps/news?pid=10000087&sid=aOeRq_GAEGK8&refer=top_world_news"MORE - BLOOMBERG.COM
I wonder if they're going to bite the bullet and raise 50 basis points next time...
Wow economics "experts" that don't know what the M in ATM stands for, definitely must follow advice here.
Ahahaha, yes back to gold! Thanks for the laugh.
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Not a bad idea :-) back to putting your teeth marks in your money and to hell with the government, the Fed, and the national debt....hmmm.
Remember the asian, russian and argentinian crises. They all happened because of DEBTS.
question: why do investors rush into safe havens when the maket tanks... any idea??
DEBT AND DELUSIONS
"By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some....The process engages all of the hidden forces of economic law on the side of destruction, and does it in a manner that not one man in a million can diagnose." - John Maynard Keynes Economic Consequences of the Peace, 1920
"The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. "... - Thomas Jefferson
Return to the gold standard would be one way to shrink the money supply by an draconian amount. I dont't think you would like the consequences of mass bankruptcies and caos.
This piece is really an ad for Comstock Funds which, IIRC, is a single bear market fund. Their speciality is "scaring up" business. I imagine if there isn't a bust soon in the economy, there will be one at Comstock Funds headquarters.
ah, yes, put more money in gold, definitely. and oil, too. actually you might be a little late on oil as it seems to have topped over the past few weeks. but you can still lose money with gold, definitely! doom! doom! doom! ROFLMAO!
RE:
RE: l@@@@@k at the chart.... it is not exaggerate. wE ARE THREATENENED WITH HYPERINFLATION... WEIMAR USA?
RE; A systemic collapse would provide the best opportunity EVER to return to the gold standard.
REST ASSURED, THERE WILL BE A MASSIVE DEBT LIQUIDATION ANYWAY
What is this, ebay?
Regarding Comstock Funds, here is a link to their fund performance. You will notice that they always have a negative return.
For anyone interested, here is a chart of long-term treasury rates...you will notice that they have steadily declined over the last 5 years.
Look at the date on that chart 2002, you might want to use something a bit more current.
Look at the date on that chart 2002, you might want to use something a bit more current.
Look at the date on that chart 2002, you might want to use something a bit more current.
My chart runs from 2000 to March of 2005...current yield on a 30 treasuries per Bloomberg is 4.57%. You must be thinking of someone else's chart.
Correction...not March, 2005 but September 30, 2005. It may take time to transmit all the info if you are on a slow connection.
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