Monday , 26 October 2026

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With Gold Stocks Suffering So Badly Should You Sell Out or Buy In? (+2K Views)

Gold stocks are down between 20% and 30% over the past year yet, in that same timeframe, the price of the gold has risen. As a result, sentiment toward gold stocks is pitiful. Even diehard gold bugs are tired of losing money in gold stocks and have been dumping their shares in disgust. This article discusses 4 main reasons I can think of why gold stocks might be so cheap. Words: 444

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U.S.A.: United States of Addiction – Our Insatiable Appetite for Debt (+3K Views)

16 point 7 trillion dollars. That is our current national debt. 12 point 8 trillion dollars. That is the amount households carry in mortgage and consumer debt. We are now addicted to debt to lubricate the wheels of our financial system. There is nothing wrong with debt per se, but it is safe to say that too much debt relative to how much revenue is being produced is a sign of economic problems. At the core of our current financial mess is how we use debt as a parachute for any problem. [Unfortunately,] addictions are never easily cured and we have yet to come to terms with our insatiable appetite for debt. Words: 850

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It’s a Mad, Mad “Madoff Market” World We Live In – Here’s Why

Given the economic outlook, there seems little reason for stock prices to be as high as they are...This market could be called a "Madoff Market" in the sense that it is a Ponzi scheme, not the classic Ponzi scheme where exponential growth of new dupes is necessary to keep the scam going...but, rather, on exponential money creation. Fantasy is fun while it lasts but reality eventually intercedes and...[and it is] those way out in fantasy land [who] are especially vulnerable to disappointment [and] so it is for those betting on the stock market and an economic recovery. Let me discuss this further. Words: 1075

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Gov’t Intimidation of Rating Agencies Shows How Desperate U.S. Financial Situation Really Is

[The U.S. governments attempt to prevent the rating agencies (and Standard & Poor's in particular) from following through on their threats to further downgrade the credit worthiness of U. S. government debt] smacks of absolute desperation. It seems that Washington insiders have come to the conclusion that the stability of the U.S. government and financial system is threatened by the ratings agencies. In this case, it is threatened by creditors and citizens knowing the truth about the financial condition of the government.

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QE Could Drive S&P 500 UP 25% in 2013 & UP Another 28% in 2014 – Here’s Why (+2K Views)

Ever since the Dow broke the 14,000 mark and the S&P broke the 1,500 mark, even in the face of a shrinking GDP print, a lot of investors and commentators have been anxious. Some are proclaiming a rocket ride to the moon as bond money now rotates into stocks....[while] others are ringing the warning bell that this may be the beginning of the end, and a correction is likely coming. I find it a bit surprising, however, that no one is talking of the single largest driver for stocks in the past 4 years - massive monetary base expansion by the Fed. (This article does just that and concludes that the S&P 500 could well see a year end number of 1872 (+25%) and, realistically, another 28% increase in 2014 to 2387 which would represent a 60% increase from today's level.) Words: 600; Charts: 3

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