Just hours ago, the results of the Aimes, Iowa straw poll were released. The first place finisher received 4823, Ron Paul received 4671 votes. Third place got only 2293 and since the total vote count was 16,892, the tally drops off rather markedly after.
What did the mainstream media make of it ? Exactly the opposite of what I just practiced here: Ron Paul was not mentioned by name, but everyone else was.
In addition, the first place finisher was born in Iowa and therefore had some hometown advantage and he was heavily favored by same mainstream media going into the poll. The Wall Street Journal for instance, wrote a lengthy "puff" piece about him just days ago.
Saturday, August 13, 2011
Efficient Market ?
One company, two classes of stock. Both classes are exactly equal in rights except for one: The second, of class B shares, have 8 votes per share versus only 1 vote per A share.
Today, the B shares trade at 12, and the A shares at 16. Does it make any sense ?
The company in question is SunPower (SPWRA and SPWRB). Interesting to note that most brokerage analysts only talk about the A shares when they give estimates and recommendations.
Today, the B shares trade at 12, and the A shares at 16. Does it make any sense ?
The company in question is SunPower (SPWRA and SPWRB). Interesting to note that most brokerage analysts only talk about the A shares when they give estimates and recommendations.
Wednesday, August 10, 2011
What's Wrong With Banking ? (Part One Of Many)
Funny story: My son wants to buy a first home and he is pre-approved for a 4.5% conventional mortgage loan, yet will finance his purchase with an 8% private loan because it's, get this, CHEAPER !
(with a lot less hassle to boot !)
A bank giving back it's banking charter because it lent to small business and got harassed for it by the regulators:
See article here :
http://online.wsj.com/article/SB10001424053111904480904576498442951766826.html
(with a lot less hassle to boot !)
A bank giving back it's banking charter because it lent to small business and got harassed for it by the regulators:
See article here :
http://online.wsj.com/article/SB10001424053111904480904576498442951766826.html
Gold At 1800....
The frequency with which I'm now posting about 100 Dollar increments in the new high price in gold should be a testament in itself that we may approach a short term top.
Commodity prices, as measured by the CRB Index, made their highs in mid April of this year and are now about 12% lower. Platinum is trading now at a lower price than gold and silver could not get much above $40. It is trading at $39 right now after hitting $50 in April.
Ever keeping in mind that the Dollar is destined to be worthless, it may be time to trade some gold for other assets. Perhaps even real estate: Banks are seemingly getting serious about cleaning their books of unwanted REO (at least in this Seattle area)
Commodity prices, as measured by the CRB Index, made their highs in mid April of this year and are now about 12% lower. Platinum is trading now at a lower price than gold and silver could not get much above $40. It is trading at $39 right now after hitting $50 in April.
Ever keeping in mind that the Dollar is destined to be worthless, it may be time to trade some gold for other assets. Perhaps even real estate: Banks are seemingly getting serious about cleaning their books of unwanted REO (at least in this Seattle area)
Monday, August 8, 2011
Gold At 1700....
while other commodity prices are falling on account of a weakening economy, gold continues its relentless rise. Gold stocks, on the other hand, still fail to join in and are acting supremely disappointing.
Governments Of The World
pledge to stabilize the financial markets ! That's the headline I just read. Given their recent successes at "helping out" the markets, I'm feeling uneasy to scared right now.
Saturday, July 2, 2011
Co-Signing a Loan
The most stupid financial act anyone can ever commit. What's worse is to become a guarantor not even knowing what the real situation of the debtor is (and when do you ever really know anyway ?).
In 2008 the Irish government decided it best to guarantee the debt of the nations banks as they were teetering on bankruptcy. At that time, Ireland was in excellent financial shape with a debt to GDP ration of around 50%.
Guess what, the banks lied: their problems were much bigger than they let on and now the whole country is bankrupt.
In 2009 Greece told the world that it "discovered" a little problem: It never knew how to do any kind of bookkeeping. It's reported balance sheet should not be relied upon and its debt is apparently much higher than previously stated.
In any rational context, this would have led to bankruptcy and incarceration of the people responsible.
What happened ? European government officials decided that bankruptcy is out of the question and since government is always above the law, the only solution left was for them to co-sign Greed debt by sending them the money needed to pay off old debt.*
Now, two years later, markets around the world a rallying strongly as another time bankruptcy of Greece has been averted by a fresh money injection. Has the situation improved in the last two years ? No: debt is 25% higher, the economy is shrinking and the country is paralyzed by strikes and violent demonstrations against the policies of the government. Is there any hope of improvement in the next two years ?
Two years ago I advocated the Euro over the Dollar because the overall financial situation in Euroland is still much better than in the USA. Now I'm selling the Euro as the lawlessness and stupidity of European leaders has turned a very small problem into a many faceted disaster that keeps growing.
How can it be legal or moral to mortgage the future of our progeny to save the hides of our present day politicians ?
*just a really minor point: this also violated the agreements that were entered into when the Euro was created. One of the resulting lawsuits will be decided July 5th before the German constitutional court. Not to worry though, since courts have an abysmal record of deciding against even the most outlandish decisions of their respective governments.
In 2008 the Irish government decided it best to guarantee the debt of the nations banks as they were teetering on bankruptcy. At that time, Ireland was in excellent financial shape with a debt to GDP ration of around 50%.
Guess what, the banks lied: their problems were much bigger than they let on and now the whole country is bankrupt.
In 2009 Greece told the world that it "discovered" a little problem: It never knew how to do any kind of bookkeeping. It's reported balance sheet should not be relied upon and its debt is apparently much higher than previously stated.
In any rational context, this would have led to bankruptcy and incarceration of the people responsible.
What happened ? European government officials decided that bankruptcy is out of the question and since government is always above the law, the only solution left was for them to co-sign Greed debt by sending them the money needed to pay off old debt.*
Now, two years later, markets around the world a rallying strongly as another time bankruptcy of Greece has been averted by a fresh money injection. Has the situation improved in the last two years ? No: debt is 25% higher, the economy is shrinking and the country is paralyzed by strikes and violent demonstrations against the policies of the government. Is there any hope of improvement in the next two years ?
Two years ago I advocated the Euro over the Dollar because the overall financial situation in Euroland is still much better than in the USA. Now I'm selling the Euro as the lawlessness and stupidity of European leaders has turned a very small problem into a many faceted disaster that keeps growing.
How can it be legal or moral to mortgage the future of our progeny to save the hides of our present day politicians ?
*just a really minor point: this also violated the agreements that were entered into when the Euro was created. One of the resulting lawsuits will be decided July 5th before the German constitutional court. Not to worry though, since courts have an abysmal record of deciding against even the most outlandish decisions of their respective governments.
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