Oldtent Archives 2007 - 2008

He needs to run his bank with some incentives.If member banks executives grab the money and retire with it ,that dosen’t accomplish the “good public policy”test.Banks needing assistance should be given a fraction of what they request ,example 100 billion requested …given 100 million with restriction that 95 % be loaned out before the next tranch is considered ,prove you loaned it out ! Then not more than 200,000 to any one borrower.The next request he can give Two

Hundred million of which 5% can be kept by the bank for administration and payroll ,but 95 % of the two Hundred million must be loaned out before the next request can be considered.The banks then have an incentive to work at it making loans at 10 %,5 %,1 % whatever it takes to get the money “out there”even 1/4 of one per cent.The bank gets to keep 5 % of a bigger handout each time it increases loans,its profit is not tied to an interest rate ,but to the volume of loans it makes to the public.The lower the loan rate ,the faster it gets out there and the sooner the bank can apply for the next handout and keep 5 % of 300 million et cetera ,et cetera.  The problem with Academics is they don’t understand incentives !

Uncle Buck back from the pits of ZOOL?

Sweet dreams…..

Thanks for the cnbc link I had missed it…Funny how Dillon Raggedhead is not snickering at Peter anymore……I really dislike that sob Dillon

Gold could hit $1,500, say Merrill analysts

By Moming Zhou

Last update: 8:26 a.m. EDT Oct. 14, 2008

NEW YORK (MarketWatch) — Gold prices could hit $1,500 as global plans to rescue the financial industry are set to increase inflation pressures, according to analysts led by Francisco Blanch at Merrill Lynch. “The unintended consequence of the ongoing financial bailout will be a return of inflationary pressures to the commodity markets,” wrote the analysts in a note released Monday. The analysts didn’t say when gold would hit the price target. They also predicted oil prices will rise to $150 a barrel.

www.marketwatch.com/news/story/gold
-could-hit-1500-say/story.aspx?guid=%7BA5996AE5%2D3242%
2D4F5B%2DAFF6%2D1A46E86D44AD

Bear Sterns, Darth Vader, and Dennis Gartman

Bill,
It was March 14, 2008. Gold closed at $998.70, silver at $20.61, and the COMEX gold open interest was 506,514 contracts. That was the day that JP Morgan, aka Darth Vader vaporized the planet Bear Sterns. As Rob Kirby has shown in his article at The Little Bear Table, Bear Sterns was long about $12 billion of gold contracts and JP Morgan was short roughly 3 times that. The $12 billion represents about 120,000 COMEX gold contracts at the price on March 14. Since that time the open interest has slid to 332,498 contracts, a drop of 174,017. The liquidation of Bear Sterns gold obviously caused others to rush for the exit as it allowed JP Morgan to hammer the gold price. The 174,017 reduction in open interest represents 17.4 million ounces (541 tonnes) of gold or just under 3 months of world mine production. Wouldn’t it be nice if Dennis Gartman read LeMetropole, went on CNBC and told the real story instead of non sense like gold has been sniffing out deflation. Regards,
Bryant

Please…draw your weapons.

Moggy

http://www.cnbc.com/id/15840232?video=890288520&play=1

I did not ever dream or think that HUI’s performance would predate and forecast the performance of the main equity market, except for the following observation.    The one  thing I did anticipate is that as margin calls accelerated, those having to meet margin calls would first sell the  portions of their holdings that showed some profit.  To the extent that their PM holdings might have been the only profitable holdings in their portfolios, they might  very well have first sold PM’s  from their portfolios, and in that context they might have driven HUI down earlier than the main equity market started downwards.  

That’s how I rationaize an answer to your question.     Cheers.  Equiz.

Frank said he would take socks but not me underwear…well the stuff is in that which he won’t take…I gatta get new stuff HAAAAA
Mayor Daley says” $250 please”…”.It’s gonna get worse next year “…..hell is he getting smart all of a sudden HAaaa oh my guts hurt I am laughing so friggin hard I wonder if he is consulting with my omnipotent Uncle Haaaa oh I gatta stop I am getting cramps

,….Gold to INFINITY ! !

…………says it ALL………Infinite Yen Euro Dollars etc ?….or Finite Gold ?

……….THIS IS IT !

CHICAGO (CBS) ¯ Mayor Richard M. Daley said Tuesday he will shut down “non-safety related city services” for six days abutting holidays over the next two years to save millions of dollars.

CBS 2 Political Editor Mike Flannery reports that Mayor Daley says he’s facing a budget shortfall of nearly a half-billion dollars. He’s already moved to cut 2,500 jobs from city hall’s payroll. Now he’s going to shut it down - along with other non-essential facilities on the day after Thanksgiving, Christmas Eve and New Year’s Eve. That will save $20 million.

The mayor’s announcement Tuesday followed behind the scenes bargaining in which labor unions rejected the idea of taking unpaid days off while city services continued as normal. So Daley made an end run around them. He said all but the most essential city functions would shut down - and city workers would not be paid - on three days during the upcoming holiday season.

“The economic crisis in this country is getting worse and worse every day, and that’s what you see in every headline in any major newspaper – locally, nationally and internationally,” Mayor Daley said. “And it’s gonna get worse next year.”

    http://www.youtube.com/watch?v=o6-Snl4a1RI