First, some important news no one else is telling you: The Dow is now trading at the equivalent of the 2,500 level, down a whopping 77% from its high.
Yes, you read that right. In terms of “honest” money — gold — the Dow Jones Industrials has already lost 77% of its value!
Now, how could that [...]
Archive for October, 2008
Seeing Through the Panic to Profits …
Posted in Economy, Investments on October 31, 2008 | Leave a Comment »
Oil to $50 … or $150?
Posted in Economy, Investments on October 31, 2008 | Leave a Comment »
When people ask me if I think crude oil is going to $50 or $150, I nod sagely and say: “Yes, probably.”
I’m not being flip. I’m simply giving both the short-term and the long-term timeframes.
Short-term, crude oil is probably heading lower, even though it’s nearly 60% off its highs.
The last chance to hold the [...]
Bailouts Continue; China Does It Differently
Posted in Economy, Investments on October 28, 2008 | Leave a Comment »
Alan Greenspan and Ben Bernanke will go down in history as two of the most incompetent Federal Reserve chairmen our country has ever had. Like Mr. Magoo, they blindly drove the stock market and then the real estate market into some of the biggest bubbles our world has ever seen.
Now, however, they are dead right [...]
How to Make 200% a Month Handicapping Recessions
Posted in Economy, Investments on October 26, 2008 | Leave a Comment »
“Widespread property foreclosures have led to bank failures, and further to much unemployment and a disastrous decline in manufacturing and agricultural production.” Sound a tad familiar?
No, it is not another of my dreary “ripped from today’s headlines” quotes. Rather, it is a contemporaneous description of the chain of events that lead to, and resulted from, [...]
Falling Oil is a Geopolitical Time Bomb
Posted in Economy on October 26, 2008 | Leave a Comment »
The petrocrats were richly rewarded as crude oil climbed to new heights. Now a sharp decline in the price of oil threatens to tear their world apart. A time for drastic action could be at hand…
But today I want to talk about a situation that feels like a ticking time bomb — a time [...]
Burning Question: Won’t This All Be Inflationary?
Posted in Economy, Investments on October 26, 2008 | Leave a Comment »
It’s a popular notion when the financial winds are blowing unfavorably:
Money is being printed uncontrollably … inflation is the only option … fiat currencies are doomed.
The thing is, if you’re buying into this idea, you’re mostly perpetuating a misconception. Actually, inflation isn’t as simple and certain as it’s cracked up to be.
Until the global economy [...]
The Credit Virus Spreads Worldwide
Posted in Economy, Investments on October 24, 2008 | Leave a Comment »
Back in 1997, a minor currency crisis in Thailand rattled a few regional market players. But the rest of the world ignored it … at first. They said it wouldn’t matter to the U.S. and would be just a blip on the radar screen.
But soon the decline in Thailand’s currency, the baht, accelerated. It went [...]
Why Mortgage Rates Are Rising Despite Government Efforts!
Posted in Credit, Economy, Investments, Real Estate on October 24, 2008 | Leave a Comment »
The government is throwing everything … and I do mean EVERYTHING … at the credit and mortgage markets.
It has taken over Fannie Mae and Freddie Mac.
It has agreed to buy Mortgage Backed Securities (MBS) in the open market.
It has pledged to take hundreds of billions of dollars in crummy assets from the nation’s major financial [...]
How Painful the U.S. Recession Will Be?
Posted in Economy, Investments on October 22, 2008 | Leave a Comment »
The U.S. economy is entering a recession. With each day that passes and each indicator we see, that eventuality becomes more and more clear.
Even so, we can take some real comfort in knowing that we’re likely going to avoid the “bottomless pit” of a Great Depression II. A substantial recession with accompanying inflation – roughly [...]
10 Things the Food Industry Doesn’t Want You to Know
Posted in Health on October 21, 2008 | Leave a Comment »
Two nutrition experts argue that you can’t take marketing campaigns at face value
With America’s obesity problem among kids reaching crisis proportions, even junk food makers have started to claim they want to steer children toward more healthful choices. In a study released earlier this year, the Centers for Disease Control and Prevention reported that about [...]
