Monthly Archives: August 2011

EURO UPDATE: EURO/USD Rangebound, risk-off for me. A list of possible implosion scenarios

From Soros: “Financial markets have a very safe way of predicting the future. They cause it.” And the markets have decided that America will have a recession. Bloomberg reports that speculation that ECB rate hikes are over led to a … Continue reading

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Tony Soprano? The Bada Bing? Nope. Today’s Gangster Social Club is in DC

To be a mega crook, you need the governments help Over a decade ago, Teddy Forstmann, known for his private investment firm, authored an article called The Paradox of the Statist Businessman. In the article, Forstmann distinguished between true enterprising … Continue reading

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The mature Warren Buffett: Loan Shark to Fortune Global 500

Warren Buffett has transitioned from Investor to Loan Shark, a “pay day” loan source to the Fortune Global 500 Warren Buffett over a decade ago lamented that he could no longer provide the world-class returns of his first two decades … Continue reading

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Buffett loans $5 billion to Bank of America, disguises it as capital infusion – 5 updates

Buffett crushes Bank of America “short-sellers.” Was this move made for the country, the people, or Buffett? It wasn’t for Bank of America, it is paying through the nose to buy a little time. Bank of America (BAC) has been … Continue reading

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Inflation vs. Deflation Part II

Making the case for deflation In our prior post (Inflation vs. Deflation Part I) we discussed some driving factors of inflation and evidence that inflation hawks were using to formulate their opinions. Certainly, few theories in macroeconomics and monetary policy … Continue reading

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Inflation vs. Deflation Part I

The case for inflation Inflation is more of an opaque concept than most people believe. In fact, I have a hard time formulating a cogent theory at times as well. This is particularly a problem today, as signals appear to … Continue reading

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Taleb gives his thoughts on banking policy and growth

The banks have hijacked the government, debt vs. equity and the agency problem Taleb, the author who has been warning investors and policymakers on the dangers of debt and agency problems in banks, gives another straightforward interview. Here are a … Continue reading

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Bank of America first “too big to fail” bank, to fail? 3 updates

All eyes focused on a big financial domino, Bank of America… Today, August 22, 2011, Bank of America (BAC), came under intense pressure and scrutiny, BAC credit default swaps (CDS) experienced a dramatic rise.  It was within 30 bps (basis … Continue reading

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Gold or Platinum, which is the better buy? 4 Updates

Platinum pushed by gold in current precious metals market On August 8, 2011, I sent an email to my personal friends recommending the acquisition of platinum. On that day spot gold was $1707/oz. and platinum was $1729/oz. I explained that … Continue reading

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Lacking Bold Leadership, Euro-Zone appears doomed… 4 updates

Market Verdict: Euro-Zone still unstable After 12 weeks of drama, the Euro-Zone is still on the edge of collapse, and the market volatility and instability validates this conclusion.  After weeks of the Greece crisis, two bailouts, and a declaration of … Continue reading

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