Originally posted by Capitalizt
Let the bad banks fail. Let the speculators go bankrupt. Let the pain cascade through the markets so risk/reward can finally reach a natural equilibrium again.
It's not just the "bad" ones that are failing. Banks that were well capitalized are being sunk because of old fashioned bank runs. WaMu had $16.9 Billion in deposits withdrawn in the 9 days before it failed. Wachovia was the next target, now they're gone. Whichever bank becomes the next target to gain media attention will be follow shortly. It's looking like National City or Key Bank.
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It will be very painful for a year or two, but we will be a much healthier nation in the long run. The correction needs to happen eventually. By delaying it further, we will only make it worse when we finally face it. Let it happen now I say.
I'll be curious whether you feel the same in 2 years in the middle of a depression. Just remember how long the trouble following Black Tuesday lasted. Are you prepared to spend your 30s in financial turmoil?
Trancer-X
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Originally posted by Groundhog Boy
It's not just the "bad" ones that are failing. Banks that were well capitalized are being sunk because of old fashioned bank runs. WaMu had $16.9 Billion in deposits withdrawn in the 9 days before it failed. Wachovia was the next target. Whichever bank becomes the next target to gain media attention will be follow shortly. It's looking like National City or Key Bank.
I'll be curious whether you feel the same in 2 years in the middle of a depression. Just remember how long the trouble following Black Tuesday lasted. Are you prepared to spend your 30s in financial turmoil?
How crazy would it be to get a reverse mortgage to buy a large quantity of commodities like silver and gold?
The housing market will probably further continue to slide while the commodity bubble has really only begun inflating.
Don't listen to me, though. Take it from Peter Schiff :D
mndeg
i went long on a limit order friday, wasn't around to sell
was hoping to get out on monday. on the bill they wanted to suspend mark to market accounting as well as not require banks carry any loan reserves. personally on the weekend I thought that was dramatic enough for a rally, but futures didn't like it nor did the asian markets like it.
my calls opened at breakeven, later I sold them at a loss. bought puts and P&L wise I'm around where I was at the high on fridays close with my calls.
i can be a bit hesitant to get rid of a position because I don't have a margin account, can't just churn money.
psychologically there's that loss aversion thing going on
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it's not time for commodities yet. burst of credit bubble beats out inflation of the dollar or demand for commodities in the short term.
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another thought. COF is probably going to take a beating in the near future.
I was dead right on lehman, but got hurt on SNDK puts. I never followed through going after IB's after that though I should of.
Capitalizt
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Originally posted by Trancer-X
How crazy would it be to get a reverse mortgage to buy a large quantity of commodities like silver and gold?
Not crazy at all IMO. ;) If I had a paid-for house, I would seriously consider it. I'm expecting gold to hit $3000-4000 and silver $50-60 by 2015. We have a $12 trillion debt and the baby boomers are going to be retiring en masse over the next few years. There is simply no way to fund our welfare state with a strong currency. It has to collapse. There is no other option but to try and inflate our way out of this mess. And the fact that the fed/treasury now have an iron grip over a huge segment of the financial markets will only exacerbate the situation and cause people to lose faith in the currency more quickly.
You've got one thing right in your other thread Trancer...Paper money is toast. I know it's not a pleasant thought but you will be proved right in the end. I've found it is pointless to try and convert the brainwashed masses who worship to the status quo. Let them cling on to their hopes that the system can be saved. Just do your best to protect yourself and your family. That's all you can hope for.
Groundhog Boy
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I'm expecting gold to hit $3000-4000 and silver $50-60 by 2015.
Yeah, good luck with that.
Gold is pretty - it doesn't make things function.
BTW, if I'm wrong, I'll more than eat my words.
Trancer-X
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Originally posted by Groundhog Boy
Yeah, good luck with that.
Gold is pretty - it doesn't make things function.
BTW, if I'm wrong, I'll more than eat my words.
It's frequently used in electronics, aerospace technology, dentistry, etc.
Originally posted by Groundhog Boy
Yeah, good luck with that.
Gold is pretty - it doesn't make things function.
BTW, if I'm wrong, I'll more than eat my words.
Gold isn't meant to make things work. It isn't meant for anything really. It is simply the universal counterweight to government stupidity.
Trancer-X
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Originally posted by Capitalizt
Not crazy at all IMO. ;) If I had a paid-for house, I would seriously consider it. I'm expecting gold to hit $3000-4000 and silver $50-60 by 2015. We have a $12 trillion debt and the baby boomers are going to be retiring en masse over the next few years. There is simply no way to fund our welfare state with a strong currency. It has to collapse. There is no other option but to try and inflate our way out of this mess. And the fact that the fed/treasury now have an iron grip over a huge segment of the financial markets will only exacerbate the situation and cause people to lose faith in the currency more quickly.
You've got one thing right in your other thread Trancer...Paper money is toast. I know it's not a pleasant thought but you will be proved right in the end. I've found it is pointless to try and convert the brainwashed masses who worship to the status quo. Let them cling on to their hopes that the system can be saved. Just do your best to protect yourself and your family. That's all you can hope for.
The thing is that I really don't want to be proven right. I just want people to snap out of their comas so that we can collectively face these problems like adults and not like a bunch of children who don't seem to know what side is up and what side is down.
I don't seem to have as many problems elsewhere as I do here but maybe it's just that this forum attracts all of the high functioning morons like pkc and the rest of the trolls - or maybe it's another reason altogether like their possibly wanting to keep people in the dark.
Groundhog Boy
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Originally posted by Trancer-X
It's frequently used in electronics, aerospace technology, dentistry, etc.
It'd be replaced in many instances, particularly dentistry, if necessary.
Secondly, do you guys realize the relapse that will happen in the tech sector if this continues?
Trancer-X
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Originally posted by Capitalizt
Gold isn't meant to make things work. It isn't meant for anything really. It is simply the universal counterweight to government stupidity.
It does have practical uses, though, and it's been put to even greater use within the last few decades.
Did you know that as per the Coinage Act of 1792, the Dollar (or Units) was an actual measure of weight and purity of silver? What we call the dollar today has absolutely no intrinsic value aside from the little bit of (nearly worthless) paper that it's printed on.
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DOLLARS OR UNITS--each to be of the value of
a Spanish milled dollar as the same is now
current, and to contain three hundred and
seventy-one grains and four sixteenth parts
of a grain of pure, or four hundred and
sixteen grains of standard silver.
When the Weimar Republic was hit by hyperinflation it took about an entire grocery cart of money to buy a loaf of bread and people were burning it to stay warm because it burned longer than the wood it could buy. Click that link to look at the picture to see for yourself.
It's also interesting to note that the German Reichsbank was actually used as a model for our Federal Reserve System by it's major architect, Paul Warburg (who's brother Max served on the Reichsbank's Board of Directors.)
