Alan Greenspan

What’s Really Wrong With America

Filed in Alan Greenspan, BP, Gold, GOld juniors, Lear, o by on February 28, 2011 0 Comments
What’s Really Wrong With America

Here’s a wonderful video I came across visiting Washington’s Blog this morning. It’s a great read if you haven’t discovered it already. As the video reminds us…. “The Funders” are not “The People”. You have to act to get it back. There is a reason everything is so screwed up. The further you stray from our beginnings the worse everything becomes. Related Article: NEWSFLASH: The Meltdown Didn’t Have to Happen Bill Black: Fire Holder, Geithner and Bernanke The No Spin Zone: Bill Black Calls BS Epic Fail: Brooksley Born Demolishes Alan Greenspan Matt Taibbi: Goldman is “Re-creating the conditions for another crash” To learn more about Wealth Daily click here Advertisement 21st Century Medicine … Is exactly what you thought it would be. An AIDS vaccine has been tested. New organs are being grown. Limbs are being created from scratch. But humanity isn’t the sole motivator… Serious cash stands to be made by curing diseases. One small biotech firm — featured on 60 Minutes — is on the path to even wilder medical breakthroughs. To see what I mean and learn about this company, watch this brief presentation . What’s Really Wrong With America originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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NEWSFLASH: The Meltdown Didn’t Have to Happen

Filed in Alan Greenspan, BP, democrats, Federal Reserve, Gold, Gold Market, lead, Lear, o, Yahoo by on January 28, 2011 0 Comments
NEWSFLASH: The Meltdown Didn’t Have to Happen

Watching the government do practically anything is often akin to watching molasses run down the hill in January. But like that slow running ooze, even the government eventually manages to accomplish its feat. The problem in this case is that they are telling us what we already know. So here’s the newsflash sportfans: the financial meltdown could have been stopped. Gee thanks… From the New York Times by Sewell Chan entitled: Financial Meltdow was ‘Avoidable’, Inquiry Concludes “ The 2008 financial crisis was an “avoidable” disaster caused by widespread failures in government regulation, corporate mismanagement and heedless risk-taking by Wall Street, according to the conclusions of a Congressional inquiry. The government commission that investigated the financial crisis casts a wide net of blame, faulting two administrations, the Federal Reserve and other regulators for permitting a calamitous concoction: shoddy mortgage lending, the excessive packaging and sale of loans to investors, and risky bets on securities backed by the loans. “ The greatest tragedy would be to accept the refrain that no one could have seen this coming and thus nothing could have been done,” the panel wrote in the report’s conclusions. “If we accept this notion, it will happen again.” The commission’s report finds fault with two Fed chairmen: Alan Greenspan, a skeptic of regulation who led the central bank as the housing bubble expanded, and his successor, Ben S. Bernanke, who did not foresee the crisis but then played a crucial role in the response to it. It criticizes Mr. Greenspan for advocating financial deregulation and cites a “pivotal failure to stem the flow of toxic mortgages” under his leadership as “the prime example” of government negligence. It also criticizes the Bush administration’s “inconsistent response” to the crisis — allowing Lehman Brothers to go bankrupt in September 2008 after earlier bailing out another bank, Bear Stearns, with help from the…

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It’s Funny How We Get The Perfect Job Number

It’s Funny How We Get The Perfect Job Number

Earlier this week on January 5th, 2011 the payroll processing company ADP reported that the U.S. economy had added 297,000 jobs. The economists went wild raising the expectations of today’s government non-farm payroll report to over 200,000 jobs. However, today the job report was released at 8:30 am EST and the U.S. Labor Department only reported a headline number of 103,000. This is quite a disappointment for all those who thought the economy was adding much more jobs as the ADP report suggested. It is important to note that all of these reports cannot be trusted. Even in modern times with all the wonderful technology in the world it seems that the readings when it comes to economic data should be taken with a grain of salt. All that really matters is if the Federal Reserve Bank will continue with it’s U.S. Treasury purchases called QE-2. As long the central bank continues to create capital reserves by buying bonds and keeps the fed funds rate at zero percent the economy will inflate overall. That has been seen throughout history. Investors should just look at when the former Federal Reserve Bank Chairman, Alan Greenspan, lowered the fed funds rates(overnight lending rate to large major banks) to 1.00 percent in 2002. The economy inflated higher for five straight years. However, once interest rates began to increase the economy had already created one of the biggest bubbles in recent times. That was obviously the housing and credit bubble of 2007-2008. We can only wonder how bad this bubble will be that is being created now? The Federal Reserve Bank tells us that there is no inflation. However, the economies in Asia are trying to fight inflation. If this is a global economy how could one part of the world have inflation and the other part have no inflation? It is simply because of the labor market and the fuzzy math that is used by the economists. When a country has high unemployment there is never signs of inflation. However, if one looks at the price of copper, gold, silver, gasoline, oil, or food they will easily see that there is inflation. Leading commodity stocks such as Freeport McMoRan Copper & Gold Inc.(NYSE:FCX), Southern Copper Corp.(NYSE:SCCO), Silver Wheaton Corp.(NYSE:SLW), and many others are trading at or near all time highs. You see today’s weaker than expected job number gives the Federal Reserve an excuse to say that we need to continue their quantitative easing program. Remember quantitative easing is the catalyst for the rally as traders and investors continue to buy the dip. If today’s government job report would have been near 300,000 new jobs the U.S. Dollar would have spiked along with higher U.S. Treasury yields. This would have caused a major sell off. Therefore, you can see how a not so good or even a disappointing job number can be good for the stock market. It’s simply amazing how this all works. Nicholas Santiago InTheMoneyStocks

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The Top 25 Financial Stories of 2010

Filed in Alan Greenspan, BP, ceo, Debt, economy, Gold, GOld juniors, lead, o, recession by on December 23, 2010 0 Comments
The Top 25 Financial Stories of 2010

So long farewell, auf weidersehen good-bye 2010. I can’t say that I will miss you. In the meantime, let’s hope 2011 isn’t the year that all of the chickens come home to roost. Because no matter how many times you try to slap a happy face on it, the economy and the markets are as tenuous as ever. Even still, as crazy as 2010 turned out to be, the year did give us plenty to write about here at The Daily Ration. Go figure. That being said, here are my top 25 blog posts of the year. In no particular order these are the stories that for some reason–in my opinion at least— say the most about who we are and where we are headed. You see, the problems that we really face are all systemic leading me to believe that the status quo cannot possibly be maintained… They include: Stiglitz: “Moral Hazard Everywhere” : Too dangerous to ignore…. Blue States Bleed Red Ink : This is a shocker… The $1 Trillion Pension Gap : The bill has come due…. Taibbi: Goldman is Creating the Conditions for Another Crash : From the vampire squid… Elizabeth Warren Warns on Commercial Real Estate: The voice in the wilderness… NEWSFLASH: Social Security is Now Cash Flow Negative : Charles Ponzi lives…. Rickards: China is “The Greatest Bubble in History” : The pressure is building….. Must See TV: Michael Lewis on 60 Minutes : Inside the doomsday machine….. Baby Boomers Take a Back Seat in The Great Recession : Bummer dude…. China’s 2012 Crisis: Cracks in The Great Wall… Roubini on Greece: The Tip of the Iceberg : Reckoning ahead… The No Spin Zone: Bill Black Calls BS : People need to fry for this….. Epic Fail: Brooksley Born Demolishes Alan Greenspan : Blah, blah, says “the maestro”…. Meredith Whitney Predicts a Housing Double-Dip : Spot on analysis…. The $19.6 Trillion Debt Bomb : Someday the bill will come due… The World According to Bill Gross Part 3 : Flushing money down an economic toilet….. Intel CEO Bodyslams Big Government : Truer words were never spoken… The Debt Slaves Revolt : Maybe it will all just go away…. Notes From Recovery Summer : It’s different this time…… The Middle Class Recession : And they wonder why people are angry….. The “Real” State of Small Business : The Must See Video of 2010 The Student Loan Scam : This is shameful… Gross, Grantham Agree: QE 2 is Troublesome : The last gasp… Hoenig: QE2 May Lead to “future instability” : A voice from the wilderness… Zillow: Another $1.7 Trillion to the Downside in Housing : Sorry Charlie….. So Adieu, Adieu, Adieu, Adieu, to you 2010. All things considered, I suppose it could have been much worse. Two hundred blog posts later that is all there is for the year—unless,of course, something really wacky happens. In the meantime, have a wonderful holiday season and a very Merry Christmas! See you in 2011….. To learn more about

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Bill Black: Fire Holder, Geithner and Bernanke

Filed in Alan Greenspan, economy, Gold, Gold Market by on October 29, 2010 0 Comments
Bill Black: Fire Holder, Geithner and Bernanke

Easy money, speculation and fraud, you can’t have a bubble without all three. Lately, it’s the fraud that has stolen the spotlight. That’s where Bill Black comes in. As one of the chiefs during the S&L crisis twenty years ago, he helped send over a thousand crooked bankers to the big house. Today, he’s calling BS–again– on the whole bloody episode that was the housing bubble. He appeared earlier this week with Dylan Ratigan….. Visit msnbc.com for breaking news , world news , and news about the economy Something to think about the weekend before an election. The truth is out there. Related Article: The No Spin Zone: Bill Black Calls BS Epic Fail: Brooksley Born Demolishes Alan Greenspan Matt Taibbi: Goldman is “Re-creating the conditions for another crash” To learn more about Wealth Daily click here Advertisement Wind Farm Construction is down a whopping 71% for the year… But this $1.00 wind energy company landed a $600 million deal for a new wind farm! And thanks to a little-known California law, you can get a piece of this action if you get in before the end of the year! Click here Bill Black: Fire Holder, Geithner and Bernanke originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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Gross, Grantham Agree: QE 2 is Troublesome

Gross, Grantham Agree: QE 2 is Troublesome

As QE 2 prepares to set sail, the Federal Reserve has plenty of doubters Among them are bond guru Bill Gross and famed investor Jeremy Grantham. From Reuters by Jennifer Ablan entitled: Gross, Grantham blast, Fed’s asset buying “ Two top asset managers, Bill Gross, co-founder of Pacific Investment Management Co., and Jeremy Grantham, chief investment strategist at Grantham Mayo Van Otterloo & Co., lambasted the Federal Reserve’s loose monetary policy and said renewed asset purchases are in danger of becoming ineffective. The U.S. central bank’s bond asset purchasing program “is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme,” Gross, wrote in his monthly investment outlook posted on Pimco’s website on Wednesday. “It raises bond prices to create the illusion of high annual returns, but ultimately it reaches a dead end where those prices can no longer go up,” said Gross, who manages the world’s largest bond fund. The Fed is expected to announce another round of large-scale asset purchases when it holds its next policy meeting on November 2-3, after already deploying $1.7 trillion to pull the economy out of the financial crisis. Gross said the United States is in “‘a liquidity trap,’ where interest rates or trillions in asset purchases may not stimulate borrowing or lending because consumer demand is just not there.” Gross’s views came a day after Grantham, who helps oversee over $100 billion at Grantham Mayo Van Otterloo & Co., said Fed policy has resulted in “extraordinary destructiveness” and “ruinous cost.” “I would force (the Fed) to swear off manipulating asset prices through artificially low rates and asymmetric promises of help in tough times — the Greenspan/Bernanke put,” Grantham wrote to clients on Tuesday. He referred to Fed Chairman Ben Bernanke and his predecessor, Alan Greenspan. “It would be a better, simpler and less dangerous world, although one much less exciting for us students of bubbles,” Grantham wrote in a report titled “Night of the Living Fed,” in a play on the traditional scary Halloween season.” The last gasp from the Ponzi scheme is about to be expelled… Related Articles: Commodities are Poised to Head Higher The World According to Bill Gross Part 3 Weekend Edition: QE2 Sets Sail Hoenig: QE2 Won’t Work To learn more about Wealth Daily click here Advertisement World’s Industrial Supermetal A metal with a name you probably can ‘ t even pronounce…is absolutely essential to a $987 billion-a-year global industry. And today— thanks in part to a massive Chinese campaign to monopolize this most crucial of elements— we’re at the brink of a global deficit. Learn how one microcap mining outfit can make you 2682% as it taps into one of the world’s last major deposits. Gross, Grantham Agree: QE 2 is Troublesome originally appeared in Wealth Daily . Wealth Daily is a free daily newsletter featuring contrarian investment insights and commentary.

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A letter to Senator Scott Brown – The Fed’s Political Interference Must Be Stopped

Filed in Alan Greenspan, economy, Gold, Gold Prices, recession by on October 11, 2010 0 Comments

The Honorable Scott Brown United States Senate 317 Russell Senate Office Building Washington D.C. 20510 Dear Senator Brown: I am a constituent who would like to help. My father sent you my book, Panderer to Power: The Untold Story of How Alan Greenspan Enriched Wall Street and Left a Legacy of Recession. You wrote my A letter to Senator Scott Brown – The Fed’s Political Interference Must Be Stopped originally appeared in the Daily Reckoning . The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today’s markets. Its been called “the most entertaining read of the day.”

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Weekend: ASPO-USA Peak Oil Conference

Weekend: ASPO-USA Peak Oil Conference

Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. This weekend, the 6th annual Association for the Study of Peak Oil and Gas Conference will take place in Washington, D.C. Attendees will have the chance to rub elbows with respected peak oil experts and listen to a panel of international speakers who will discuss the complex socioeconomic and geopolitical impacts of peak oil on economies and the future of energy. Among the distinguished conference guests who will gather on Capitol Hill are former CIBC Chief Economist Jeff Rubin, former Secretary of Energy James Schlesinger, policy expert Ralph Nader, and climate and energy advocate Bianca Jagger. A host of peak oil scientists will be joined by U.S. Representative Roscoe Bartlett, and energy analysts, including Dr. Bob Hirsch, Dr. Roger Bezdek, and Charlie Maxwell. Advertisement I’ve Uncovered A Photograph that Could Hand You $36,950 by this Time Next Year… I don’t blame you if this sounds far-fetched… In fact, if I hadn’t met the man who traveled 1,400 miles to track me down — just to hand me a photo — I wouldn’t have believed it, either. But once you take a peek at the snapshot, as well as the three reasons it could make you rich, I have no doubt you’ll change your mind. This meeting will, no doubt, clear up any misunderstanding of peak oil — something I’ve written about several times over the last few weeks, as I am hell-bent on clearing up the general misunderstanding among my readers and the public about peak oil ( here , here , and here ). A conference such as this one should be a pre-requisite— a 101 class for the handful of anti-peak hacks that can’t tell the difference between easy-to-get-to and hard-to-get-to oil. Jim Cramer might find a conference like this worthwhile. He simultaneously doesn’t “subscribe” to the Peak Oil Theory (his own words), yet defines it at the same time: “We’re not running out of oil at all. We’re just running out of oil that is easy to find and easy to get at. There are vast reservoirs, vast, far more than we need for multiple years. It’s just not where we want it. So I don’t subscribe to Peak Oil theory. What I do subscribe to is the cost of oil is going to be so much higher that the cost of oil is never going to come back below $40 ever again.” It’s true that we have a couple trillion barrels here in the United States. There are 500 billion barrels in Orinoco tar sands, and another 170 billion in the Alberta tar sands. But no one ever …

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The Greenspan Curse

Filed in Alan Greenspan, ben bernanke, Debt, Gold, Gold Market by on October 7, 2010 0 Comments
The Greenspan Curse

You would think after causing two of the biggest bubbles in history that Alan Greenspan would be exiled by now to some small island off the coast of Italy. Instead, this aging ponzi-king keeps walking the streets like some half dead zombie content to still lecture the rest of us on the joys of central banking. Today he’s upset that you boobs are so far reluctant to start another one of his central banker wet dreams—otherwise known as an asset bubble. In fact, he went so far as to call you all a bunch of scaredy cats. Writing in the Financial times today the Maestro said: “American households have shifted their cash flows from illiquid real estate and consumer durables to paying down mortgages and consumer debt…It is this rapid rise in aversion to illiquid risk that explains a large part of the anaemic recovery in the US.” Fear, in other words, undermines America’s recovery And if you would just jump in the magic bus and start borrowing and spending yourself to oblivion again this lack of aggregate demand stuff would cure itself in an instant. Meanwhile that’s exactly what Ben Bernanke and his toady Brian Sacks are hoping for as they work to create the a third bubble. In fact in a speech last week, Sacks essentially admitted as much when he said; “Balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth bykeeping asset prices higher than they otherwise would be.” All of which is nothing more that old Fed black magic that created the first two debacles—the Greenspan Put. Speaking of debacles, the current mess shows no signs of letting up. From Gallup by Dennis Jacobe, Chief Economist, entitled: Gallup Finds U.S. Unemployment at 10.1% in September “PRINCETON, NJ — Unemployment, as measured by Gallup without seasonal adjustment, increased to 10.1% in September — up sharply from 9.3% in August and 8.9% in July. Much of this increase came during the second half of the month — the unemployment rate was 9.4% in mid-September. Certain groups continue to fare worse than the national average. For example, 15.8% of Americans aged 18 to 29 and 13.9% of those with no college education were unemployed in September. The increase in the unemployment rate component of Gallup’s underemployment measure is partially offset by fewer part-time workers, 8.7%, now wanting full-time work, down from 9.3% in August and 9.5% at the end of July.” Needless to say, that could make for an interest jobs report tomorrow morning. As for Alan, I just wish he’d go away for good and take Ben Bernake with him. Related Articles: Alan the Preposterous Rides

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Citigroup (NYSE:C) Sees $1,300 Gold in a Week

With one caveat, Citigroup (NYSE:C) says within a week we could see gold hit $1,300, and the caveat is if the Federal Reserve in the U.S. announces they’re going to implement quantitative easing again. If that happens, all bets are off as to how high gold prices could go, as gold prices today broke another all-time record, and that will continue to happen on a consistent basis. The reason this

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