Oldtent Archives 2007 - 2008

You must be mistaken,  I saw this guy on TV today     and he said they had plenty of cash and they did not need to raise any money and they are a strong company.  It did concern my a little that these guys  were following him!  :-) 

i’m right
no,, i’m right
no no I’m right
Hey You’s ,, i’m right
no no no I’m right
no way i’m right,, right ..

is human condition

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INFLATION = ONE VIAGRA TABLET
deflation = one hour later
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abtd ,, and ignorant too .. ..
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All of it is appreciated and understood, and I now understand why you repeatedly post that the 300- day moving average is ‘up again today’.  Please let me repeat my own opinion that, for my investement decisions on timing to buy more physical gold or silver, I can think of no more useful indicator than the 300 dma or the 200 dma.  And that is why I appreciate you regularly posting data on this indicator for POG.  I think my fascination with the 300 dma and 200 dma is because I have never learned how I can successfully use ’rounded bottoms’, ‘double bottoms’, ‘teacup formations’, ‘head-and-shoulder’ formations, or ‘necklines’ to make rational decisions as to when to buy or sell PM equities or physical silver or gold.  But I can relate to the relevance of the 300-day moving average.

Thank you again, and best wishes from someone who is still trying to fathom what TA has to offer.  Equiz.

  Lots of down volume today.  Had a 52 week high of $74

finance.yahoo.com/q?s=LEH

I used to read Bob Bronson and the others at the University of Colorado site, so this debate is not new to me.

Deflation occurs when money is destroyed, by debt default for example. The $600 Trillion in derivatives that have a market value approaching zero is a form of debt default.  The paper claims are not enforceable.  There is no way to get it all back.  If half is lost then a massive deflation occurrs.  Those who claim that the loaned money still exists are focussing upon one half of the information.  Let’s look at a simple example.

Imagine a fund managed to acquire 100 billion dollars by selling derivatives.  Those who bought them are holding paper that no one wants, and so have a real value close to zero.

Let’s imagine further that the 100 billion dollars was wisely invested in stock markets and is now sitting in cash in some private bank somewhere private.  I think that the holders of that money are smart enough to know a bear market and won’t soon put their money into equites; maybe bonds, but short term for now.  And in currencies that are likely to strengthen.

I do not think that the amount of money that was available to drive up stock markets around the world is available in the amounts, over time, that existed before 2007.  So less cash is available to drive up markets.  Not only that, but as markets fall, rallies are being sold.  So money is leaving the equities markets.

This is a case again of bad money driving out good.  In this case derivatives have put cash into hiding.

This means that private banks are reluctant to lend to miners or other businesses.  This is deflationary.  The money may exist somewhere, but if it is not available as cash for loans to develop businesses, then it reduces the supply of available money.  It is the available money that people can use if they borrow.  If little is available, then this is deflationary, because money for proper business and other loans is not available.

Better paying jobs went overseas.  People have been using credit to fund current expenses.  Now that the falling house prices have ended that game, people are spending less.  This is deflationary.

Prices can rise for food and other goods, but this is not inflation.  Inflation is the increase in the money supply.  There is no increase in the money supply.  There is no increase in the overall money supply.

There is no increase in the availability of credit.  In fact, money supply is shrinking, just as Sabregold has shown.  The capital base of banks has shrunk.  This is why the lending window at the Fed is open for the forseeable future.   This is deflationary.

Banks are reluctant to lend overnight to each other.  This is why LIBOR is up.  This is deflationary, as it slows the velocity of money, and the availability of credit.

Fannie, Freddie insolvent, Poole tells Bloomberg

(Reuters) - Mortgage lenders Fannie Mae and Freddie Mac are “insolvent” and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.

“Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,” Poole was quoted as saying in an interview held on Wednesday.

Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.

Shares of the two companies have taken a beating recently on worries about whether they can withstand more losses and support housing as well as concerns that they may need to raise massive amounts of new capital.

Freddie Mac shares tumbled 23.8 percent to $10.26 on the New York Stock Exchange on Wednesday, while Fannie Mae shares sank 13.1 percent to $15.31.

Poole could not be immediately reached for comment.

…..FGC Note…..I guess NOT…..he was immediately taken our back and shot !

Thanks for the memories. Aahhhh, the good old days. {G} I still remember updating my charts daily by hand. I had to because I could not wait for my subscription to “Daily Charts” to arrive.

Keep those posts coming, RNO. Your insight, comments and opinions are always of great value.

JBI

….fer a Redneck…

….You must be a Redneck….

……ever see those guys ?

I remember well, friend, those early days at our TENT. You, Farmboy and others encouraged and motivated me to keep it coming…………..and so I have. It’s the least I can do for all that I get in return here.

Best wishes always to you and your loved ones.

JBI

PS - Being able to keep up with RR is a blessing and very much appreciated.

we gonna have to start addressing you as imelda (marcos)?

rno

Thanks a mil for sharing your findings on Rep Louis Thomas McFadden. Sounds like he would have gotten along just fine with our friend, Dr Ron Paul. Gutsy and with a strong conviction, McFadden was simply an unsung hero of his time. He deserved much admiration and praise as he dealt with one of the most ignorant House of Representatives that was ever assembled, truly sad and very tragic.

I’m saving your post, as I want to read up some more on many of the links you provided. Once again, THANKS A MIL!!!!

JBI

LOL

JBI, Im guessing in reality gold will be at 1500 before it will. That is if Russia doesn’t blow us up first.

It could develop a bear flag that would point there.  I agree that two or three years until the final low is a valid estimate.  Add me to you and aurum for the group suggesting just over 14,000.  My March 2004 article had that.

‘the price objective of this three year Inverse Head and Shoulders bottom/ Cup and Handle would be roughly 14,000.

Dow Industrial ten-year weekly chart:’

www.gold-eagle.com/editorials_04/bird032304.html

OMG !!!

Say what ????

Shoes prices are going up too !! ses who ????

Merda .

Wow do I ever feel smart for stockpiling 50 pairs in my closet.

phew, that was close