Thoughts on Markets

Thursday, May 20, 2010

Buying Opportunity??????? - What's with Greece and the EURO

Both gold and silver are down substantially from the recent highs. However, they are still real money and will recover as the mistrust of the paper currencies spreads. There are signs of this already. I have been cautiously buying Fortuna at < $2 which is a buy for my portfolios. Make your own decisions based upon your own portfolios and your risk tolerance.

From Sky News:

Chinese dumping worthless currency for gold (17May10)

See this interesting short video on youtube HERE. The Chinese are wise in this respect. They have historically been frugal and wise in most financial matters.

From Finance.Yahoo.com:

Mortgage delinquencies drag on economic recovery


WASHINGTON (AP) -- The mortgage crisis is dragging on the economic recovery as more homeowners fall behind on their payments.

Analysts expect improvement soon, but the number of homeowners in default or at risk of foreclosure will have a lingering effect on the broader economy.

More than 10 percent of homeowners with a mortgage had missed at least one payment in the January-March period, the Mortgage Bankers Association said Wednesday. That's a record high and up from 9.1 percent a year ago.

A big jump in the number of borrowers who have missed three months of mortgage payments drove the increase. Read it HERE.

This is a big drag on the economy which is causing a great deal of harm. The unemployment remains sky high, as well.

From The DailyPfennig.com: "It has turned into a case of the "Whole Shootin' Match is going to burn"...

You would think that a thought pattern of the sky is falling would certainly be good for Gold... But, NOOOOOOOOOOOOOO! These investors are saying that even Gold isn't good enough to weather the storm, they need Treasuries...

Personally, I think they need help... To think that buying Treasuries at these ridiculously low yields that are denominated in dollars is going to help them ride out the storm is making me believe that they are not Smarter Than a 5th Grader!

But... That's the way of the world these days... I could sit here and fire off warning after warning about Treasuries, but it wouldn't matter...

It sure doesn't fly alongside the Modern Portfolio Theory of Harry Markowitz, that I for years, would highlight in my presentations...

And the thing that its fueling is that same old circle of bad things here in the U.S. with yields falling on Treasuries from all the buying, Home mortgages rates will be going down again too, and before we know it, another mortgage bubble pops up..."

Treasurers may seem to be the only liquid game in town, but how safe are they when backed by the full faith and credit of a bankrupt nation? To me, they are temporarily safe, at best, but doomed for destruction through the hyperinflation which will result as the Fed and White House continue to "print" us out of the financial mess.

From Ed Steer's Gold and Silver Report: "You will carefully note, dear reader, that every day in this engineered sell-off in both gold and silver, a new low is set... and more brain-dead tech funds are forced to puke up their longs... and the bullion banks either take the tech fund longs and keep them for themselves [no change in open interest] or they take that long and close out one of the short positions they hold [open interest falls by one]. Only traders in the Commercial category [read bullion banks] are allowed this outrageous privilege... as traders in the Non-Commercial and Nonreportable category of the COT aren't allowed to do that."

At the very least this is immoral. Why should they be allowed this advantage over the other investors and traders? Their actions are sanctioned by the Fed and White House. What ever happened to government by and for the people? Even Congress ignores the people.

From The Washington Post:

Senate passes financial regulation bill

The Senate approved far-reaching new financial rules on Thursday aimed at preventing the risky behavior and regulatory failures that brought the economy to the brink of collapse two years ago and cost millions of Americans their jobs and savings. This important regulation may be read HERE.

This is likely to be a scam with preferential treatment for selected Wall Street companies which have been generous to Congress and the White House. Business as usual.

From Telegraph.co.uk:

'Perfect storm' as market tremors hit China, Europe and the US

"It is the perfect storm," said Andrew Roberts, credit strategist at RBS. "People have been too complacent about risky assets. This is a global deflation scare and people need to get ready for falls in US and European bond yields to 2pc."

The global stock market sell-off continued for a third day on Friday. London's FTSE 100 dropped 2pc to trade below 5,000 for the first time since last October. Germany lost 2.4pc, France 2.2pc, Japan 2.5pc, while Wall Street opened lower. Read it HERE.

From MineWeb.com:

Gold and Greece: not what you think

Ken Gerbino feels that hysteria over the state of Greece and The Euro is overdone and could lead to people making the wrong investment decisions.

Author: Kenneth J. Gerbino
Posted: Thursday , 20 May 2010

BEVERLY HILLS -

There is so much hysteria in the hard money camp on Greece and the European Union that one had better start looking at the facts otherwise it could cost you a lot of money.

Before discussing the Euro, Greece and Gold, let me go over some important concepts:

The economic problems faced by all countries are rooted in paper money systems. In fact, paper money systems are one of the root causes of socialism and socialist thought. Paper money also gives capitalism a bad name. Right now the temporary solutions from bail-outs and printing money will change the short and medium term outlook for many investments. These changes must be analyzed properly. The long term will always get worse from these bail out policies, but making money in the markets means having the good sense not to get carried away by hysteria from the press and gold coin shops (although everyone should buy some gold and silver coins). Read it HERE.

From RT.com/Business:

Euro slump due to planned Wall Street and Washington’s attack

William Engdahl

See & hear it HERE.

The last two articles give more insight into the Greek - Euro situation. Remember some of our states are in worse shape than this and are receiving no publicity. Why?

From MineWeb.com:

Booming Asian demand opens opportunities for junior resource companies - Roulston

Lawrence Roulston feels that resource companies with potential for feeding the massive growth markets of the East offer strong opportunities for the investor. Interview with The Gold Report.

Author: The Gold Report
Posted: Thursday , 20 May 2010

VANCOUVER, BC -

One of the first things mainstream journalists in Western media learn is how to tease angles out of stories that play on fear, scandal and disaster. Good news is no news. Bad news sells. If it bleeds, it leads. As historian, political writer and Guardian columnist Timothy Garton Ash observed, "Many Chinese City Dwellers Moderately Content with Rising Standard of Living" isn't a headline that would sell a lot of papers. Newsletter publisher Lawrence Roulston reckons the media has a huge bias toward the negative side of any story. Investors focusing on scary headlines are missing out on phenomenal opportunities developing on the other side of the world-namely Asia and, particularly, China. Read it HERE.

From MineWeb.com:

Mitsubishi Trust to launch ETF backed by gold stored in Japan - Source

Japan's largest trust bank aims to list the ETF on the Tokyo Stock Exchange this summer the source said.

Posted: Thursday , 20 May 2010

TOKYO (Reuters) -

Mitsubishi UFJ Trust and Banking, plans to launch the country's first precious metals exchange traded funds that are backed by physical metals stored in Japan, a source close to the matter said on Thursday.

Mitsubishi UFJ Trust, the country's largest trust bank, will manage physical gold and other precious metals, including silver and platinum, in Japan and aims to list the ETFs on the Tokyo Stock Exchange this summer, said the source, who was not authorised to speak publicly on the issue. Read it HERE.

Miners from Scottrade.com:
Currencies from Kitco.com:

Some prices: BYDDF 7.10; FVITF 1.90; BULM 0.76; Silver off 0.04 to 17.57; Gold off 4.80 to 1178.40; DOW up 3.47 to 10073 (PPT keep it above 10000?????????)

Lasting security and salvation is available only through the Lord Jesus Christ, because He has paid the price for our sins and is in control of everything. He, alone, is Sovereign with His Father. Praise Him daily.

Best to each, Doug


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