The US system of capitalism has become a system where the capitalists have no capital. The big banks have too little in savings…not enough ‘buffers’ to protect them from unexpected crises. They made a fortune during the boom years…
September 7th, 2009 | Bill Bonner | 0 comments | ContinuedAll Posts Tagged With: "cash"
Buying and Holding a Bad Strategy if Bank Earnings Remain Unpredictable
If we’re right, households have just begun reducing their debt loads. It will take years for the leverage in the system to be wound down. See Bill’s comments about that below. If you’re buying bank stocks you’re assuming credit and debt growth will resume once this recession is over. That’s a big assumption. And probably stupid.
August 12th, 2009 | Dan Denning | 4 comments | Continued
How the Stimulus Works
“The cash that salvaged a county,” says the headline. Perry County, southwest of Nashville, must be one of those places you don’t want to stop when you’re driving across the country. With 25% unemployment and no significant industry, it sounds dreadful…
July 30th, 2009 | Bill Bonner | 2 comments | Continued
People Flee Back to the U.S. Dollar
But what you can’t count on is how much that cash will really be worth. And there lies the great trap for the lumpen investoriat. The lumpen, as you know, get their investment ideas from TV and the newspapers. The poor rubes are the last to buy in a boom and the last to sell in a bust.
July 6th, 2009 | Bill Bonner | 1 comment | Continued
Your Actively Managed Superannuation Fund Cannot Beat the Market
There are at least two points worth noting in this survey, three actually. First, actively managed funds, on average, don’t beat the market. Unless you know a genius manager, paying for results doesn’t deliver them.
July 6th, 2009 | Dan Denning | 10 comments | Continued
Zombie Money and the Abolition of Cash
One more note if you’ll indulge me. It relates to zombies and the money system which you currently live under. From when I write, that system is just another bad but undead idea. But most of your contemporaries take it quite seriously. Let me make a comparison which I hope you’ll find useful in your efforts to warn people about the dangers they face with zombie money…
June 24th, 2009 | Dan Denning | 6 comments | Continued
The Magical Investment Corporation
“For the record, I must make a correction to the statement that all investment trusts look liked monkeys at the time of the boom and crash.” So writes Fred Schwed in his 1940 investment classic Where Are the Customers’ Yachts?
February 25th, 2009 | Chris Mayer | 0 comments | Continued
Tips from an Obama Insider on the Next Two Years
Now that Obama has officially dropped the “elect” from his title, what can we expect from his administration…and what does it mean for the country? Byron King passes along some rather grim predictions from an “Obama insider”, and gives us some advice on how to deal with the coming fallout…
January 23rd, 2009 | Byron King | 0 comments | Continued
After the Bailout of Wall Street, Everybody Wants Cash
The automakers are at the head of the line. Auto sales fell 6% worldwide in the 3rd quarter. GM says its North American sales were worse – off 18.9% from last year…
October 31st, 2008 | Bill Bonner | 2 comments | Continued