Posted on 12 May 2010.Standard Podcast [47:29m]: Hide Player | Play in Popup | Download
Thursday, May 13, 2010
Why? Behind the façade, the lovable, good ol' Uncle Warren strumming his cute little ukulele, ostensibly supporting reform, there's a dark force that's part of the toxic Goldman Conspiracy fighting to keep alive everything that's wrong with Wall Street, everything that got us into this mess, everything that will trigger another meltdown that even Uncle Warren says: "I can guarantee it."
Transocean (NYSE:RIG) shares hit $65 last week, and I think that’s a near-term bottom. Yes, there’s a lot of finger-pointing at Transocean, mostly by people who are immensely ignorant of how the drilling business works. Or they have a vested interest in shifting the blame.
At the end of the day, BP hired Transocean to drill a well that BP designed. If Transocean followed the specs, you can’t pin the donkey-tail on these guys. The worst anyone can say – and they’re saying it – is that Transocean had a bad blowout preventer (BOP) that didn’t function. (more)
There are numerous reasons both fundamental and technical as to why the precious metals complex will surge over the next 18 months. The sector’s surge will be reinforced by the lack of an obvious trend in most other markets. Gold, Silver and the mining stocks will surge while other markets languish.
First let us look at a chart of Gold and Silver along with the major asset classes. Before I analyze it, what do you notice? (more)
The index for March/April 2010 was 33.1, a slight increase from 33.0 in February, representing another new high in the 26 years going back to 1984 analyzed by HuffPost. Though there have been some encouraging signs, from higher housing prices (which have an inverse relationship to the index) to declining home equity delinquencies, the jobless numbers continue to increase the misery. In addition, nearly 40 million American were enrolled for food stamps in February, which has been described by anti-hunger groups as the highest share of the population ever in the assistance program. (more)
Reinforcing the point, to address concerns stirred by a Congressional Budget Office (CBO) forecast that the U.S. government will accumulate total deficits in excess of $6 trillion over the next decade, in February President Obama issued an executive order to create a bipartisan fiscal commission. The commission’s task is to deliver recommendations to the president by December 1 for limiting future deficits to 3% of GDP. (The FY 2009 deficit approached 10% of GDP. The FY 2010 deficit will probably go even higher.) (more)
Intervention Alert - Here Comes The Bailout Bailout: European Cental Banks Gobbling Up Portuguese, Irish And Greek Government Bonds
This bailout is not a fix or a cure for too much debt. People on both sides of the pond are simply spending more than they earn. The “fix” is a long painful road of consuming less and saving more, but that is not what this bailout represents. What the leaders of the Western World chose was the short painless path of money printing. You have to ask yourself where did they come up with nearly a trillion dollars in such a short amount of time? (more)
It seems that dinosaur GM helped extinct itself through a series of errors. They are well documented by financial trader Adam Hewison, co-founder of the MarketClub.com, in his linked article and DVD. The errors include developing an electric car in 1996 when gas was $1.28 a gallon, naming the battery powered car the EV1, then scrapping it in 2002 when prices were climbing to $4 a gallon. Oops! (more)