But as you’ll learn today, the bankers, the Fed, the media…the whole lot of them…have learned nothing from last year. The hangover was just beginning to set in, so everyone began drinking again heavily. And now the party is wild and out of control. Even the cops are drunk.
October 27th, 2009 | Dan Denning | 4 comments | ContinuedAll Posts Tagged With: "financial system"
Gold is in a Bull Market
“In the last big boom in gold – in the late ’70s – gold followed inflation…and the central bank. Investors saw inflation increasing. And they saw the central bank failing to react fast enough. They bought gold to protect themselves.
October 15th, 2009 | Bill Bonner | 0 comments | Continued
Underlying Demand During a Housing Shortage
That is clever to suggest that when rates rise people will have to find another way to say that houses are affordable. But we reckon when rates rise, as they eventually must, a lot of new home buyers will find out that access to cheap credit does not make a house affordable. It just makes the amount of debt you owe to the bank a lot larger.
September 30th, 2009 | Dan Denning | 39 comments | Continued
Naturally the Feds Want to Raise as Much Money as They Can
Now, the feds have intervened in the economy too. And, likewise, they are trapped. By pumping in trillions of dollars – not just in America, but also in Britain and China (which have both intervened even more forcefully)…
September 21st, 2009 | Bill Bonner | 2 comments | Continued
Gold and its Poorly Understood Historic Role in the Financial System
The burden of today’s Daily Reckoning , then, is to remind these nattering nabobs of negativism that gold is not anyone else’s debt. It is not anyone else’s liability. It cannot be created with a few keystrokes. And for thousands of years, millions of people from all walks of life have been happy to use it as money because of its unique features…
September 15th, 2009 | Dan Denning | 15 comments | Continued
What Evil Sends Investors Running to the Protection of Gold?
The press attributed this week’s rise in gold to benign causes. The end of the world seems to have been postponed – indefinitely. Bloomberg reported that a clear majority of those polled thought the world economy was recovering.
September 14th, 2009 | Bill Bonner | 1 comment | Continued
The Achilles’ Heel of the Entire World Financial System
The moral of this story is that you have to go all the way. If you want your baby to be invulnerable, put him all the way under the water…even the heels. Or, maybe there’s another point: that there’s always some place where you’re vulnerable.
August 24th, 2009 | Bill Bonner | 4 comments | Continued
Buffett Not Worried About Depression But How Recovery is Financed
This is probably the view shared by most economists and most investors. It is not our view. From where we sit there is no recovery underway…and there never will be one. You can recover from a hangover. You can recover from a nasty divorce. You can even recover from an earthquake.
August 21st, 2009 | Bill Bonner | 0 comments | Continued
Roubini Says United States Will Climb Out of Recession Towards End of Year
Maybe he will be right. Maybe this downturn will resemble Japan’s multiple recessions over the last two decades. Or maybe it will be a single, deeper and longer lasting slump – like the one in the early ’30s. We don’t know. Either way, it should be thought of as a depression…
August 19th, 2009 | Bill Bonner | 0 comments | Continued
Signs of Life
Here’s a thought: if Washington can set salary caps on Wall Street because taxpayer money is involved, why can’t the rest of America set salary caps on American legislators? Those clowns get government money every single day. They even spend money they don’t have by robbing from generations of unborn Americans. And they’ve run regular structural budget deficits for decades!…
February 5th, 2009 | Dan Denning | 1 comment | Continued