By: Bill Bonner & The Daily Reckoning Crew - 18 April, 2008
-Waiting in line is the world's most popular activity…from 'could be better' to couldn't be worse… -Investors are staying put despite a falling sky…ditching the herd in a financial downturn… -Predictions for a polite and mild recession…the 'Dark Side' as reported by the voice of economic credulity…and more! Full Story
Several Massive Bubbles are in the process of bursting in the U.S. Economy and Financial Markets, with serious worldwide ramifications. The most prominent among them are the (overlapping) Housing Bubble, the Collateralized Debt Obligation Bubble, the Darkly Liquid OTC Derivatives Bubble, the M3 Expansion Bubble, and above all, the Bloated Credit Bubble. Full Story
I do know this - silver is still grossly undervalued, because of its supply/demand fundamentals, its relationship to their commodities and in light of the record concentrated shore position. Someday, and I don’t know which day, those things may no longer be true and silver may no longer be undervalued. But that day is not today. Aside from potential short term sell-offs engineered by the big shorts on the COMEX, silver still looks like the best long term investment. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 18 April, 2008
Recent high profile bankruptcies of mainstay American retailers, such as The Sharper Image and Linens ‘n Things, as well as the proposed mergers between Blockbuster/Circuit City and Delta/Northwest, and the admissions from the nation’s leading student lenders that their business models are no longer viable, mark the beginning of a long overdue overhaul of the American economy. In short, the economy will be getting smaller and more expensive. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 18 April, 2008
After an exceptionally turbulent month in the precious-metals complex, many traders are trying to make sense out of all the chaos. Did the recent violent retreats in gold, silver, and the HUI gold-stock index likely mark the ends of their respective uplegs? Or do these strong uplegs probably remain intact? Full Story
By: Louis Paquette, Publisher, EGS - 18 April, 2008
February was a phenomenal month for the resource sector. With continuing fallout from the subprime lending mess, the U.S. Dollar Index broke key support at 75, hitting fresh multi-decade lows, so commodity prices soared. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 18 April, 2008
The price of gold in the short term will move in extremes in every direction but gold will be overall strong for the rest of this decade and beyond. It’s not too late to invest in gold related equities to take advantage of their wealth generating attributes. Full Story
By: David Morgan, Silver Investor - 18 April, 2008
American Silver Eagle silver coins are approved for IRAs. Other silver approved investments must be .999 fine, which makes Canadian Silver Maple Leafs, Australian Kookaburras, Mexican Libertads, and even .999 fine silver rounds also eligible. Full Story
If I were to suggest that the Gold and Commodities Boom owes its current robust constitution to the Internet, the image of a horse’s posterior might pop into your head. But bear with me, and see if you can’t be convinced. Full Story
By: Richard Daughty, The MOGAMBO GURU - 18 April, 2008
Already beset by demons of my deteriorating mental and cardiac capacity, the idea that the capital gains tax was already 5% and I hadn't even noticed had me in a panic! What else wasn't I aware of? I shuddered to think! Full Story
Sometimes we hear on the evening news that the stock market finished up or down only slightly on days when the averages have swung wildly all day. Yesterday was not one of those days. The Dow finished up a mere 1.22 points, and that pretty much tells the story. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 17 April, 2008
-The tragic end of the Great Moderation…deflation works on yesterday's bubbles…the new Alpha male on Wall Street… -The frogs are now richer than Americans…the attractiveness of Roman-style reinvention… -The Big Apple experience at a big discount…mainstream financial press finally pans hedge funds…and more! Full Story
By: Ty Andros and Peter Eliades, TraderView - 17 April, 2008
The unfolding economic scenery can only be described as one thing: TUMULTUOUS leading to HUGE OPPORTUNITIES. Inflation in anything which is solid and deflation in everything that is paper, so monetary policy can only address one or the other and fiscal reform (reduction of regulatory, or tax, print and spend policies) is never considered. Full Story
By: Bob Chapman, The International Forecaster - 17 April, 2008
What everyone keeps forgetting is that bond prices are at 50-year highs due to plummeting rates of interest that are destroying the dollar. If the Fed keeps lowering rates, speculation and inflation will get worse, and gold will soar. But if they start to stabilize rates, or to raise them to support the dollar, bond principal will get cremated and a goodly portion of those many trillions of dollars in bonds will flee in terror and find their way to precious metals as a safe-haven and inflation hedge. Full Story
Currently, the outstanding notional amount of all credit default swaps is about $45 trillion, more than half of the entire asset base of the global banking system. A natural question is why financial institutions are so interested in them? Why have they created so many of them to make this market so big—and out of control? Full Story
On a pullback to the 18-Day Moving Average of Closes, I intend on recommending an entry point for those of you not yet involved in this market. Currently followers of my Twice Daily Market Reports are holding a small core long position in June Gold using the 970-1000 June Call Spread. Depending on how prices act here, I intend on adding gold positions. Full Story
By: Richard Daughty, The Mogambo Guru - 17 April, 2008
On a stand-still basis for foreign exporters, we would have to pay prices that are 20% higher for our imports, just for them to break even when converting dollars back into their native currencies! Hahaha! We pay more for things! Welcome to the hell of a falling currency! Full Story
There must be quite a few more nervous shorts out there than we’d imagined. The Dow Industrials shot up 257 points yesterday, but take a look at the news that drove shares ebulliently higher: Intel earnings for the first quarter were off by 12%, and JP Morgan’s profits suffered a whopping 50% decline. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 16 April, 2008
-Economically painful consumer sandwich…Americans and Brits in the same sinking boat… -No coincidences in oil production, comrade…prices that wear booster rockets… -Could Skodas make a play in the United States…the high price of food riots…and more! Full Story
Few seem to remember that Wall Street is not a non-profit community driven by altruism or any sense of service. They would gladly cheat you out of your entire life savings if their actions were legal, or at least not prosecuted. In the last two to three years, the lies, deception, misdirection, false reporting, corruption, and grand fraud will be the topic of historical accounts for decades. Full Story
The best solution to the financial problems brought about by the Fed’s past bubblenomics is analogous to a "big bath": write the old system off and start up a new one with sound fundamentals. That means eliminating legal tender laws, doing away with monopoly government fiat money, and making institutions that claim to be depositories for money actually hold that money. Full Story
Two months ago I penned an editorial calling bottom on the uranium stocks. Technically I saw many stocks deeply oversold yet positive momentum was starting to build. A few months later and the positive momentum divergences have continued to build. A few U stocks did indeed bottom but more have made slight new lows. While we need price to confirm a bottom it is important to note that forming significant bottoms can be a timely process. Full Story
Britains housing boom has been one of the biggest in the western world and it is highly likely that once the dust settles in some 2-3 years time, it will turn out to be one of the biggest housing busts in the west. The Housing bust of 2008 will be followed by a sharp slow down in economic activity during 2009 towards recession. Full Story
As we rap up this article, we have the U.S. dollar sinking to new lows, gold up $16 and silver up $.35 at $944 and 18.20 respectively. Thus, it is important for investors to be completing their purchases of shares, warrants or leaps. Full Story
The collective message of the bond market is one that is being almost entirely ignored by the financial press. While millions of investors are caught up in the past, cowering under their beds waiting for the next financial bomb to drop, the bond market is screaming to all that will listen, “The worst is over – the economy will improve!” Full Story
By: Richard Daughty, The MOGAMBO GURU - 16 April, 2008
I hope you have a good grip on your hat because it is going to fly up off of your freaking head when I tell you that right now the S&P500 is sporting a P/E of 21, and the freaking Dow is so overly-valued that it is selling at a P/E of 53! Full Story
By: Bill Bonner & The Daily Reckoning Crew - 15 April, 2008
-A Greek tragedy on the American stage…Americans struggle to drive American cars… -A way around American energy concerns… a scene like on a street corner in Amsterdam… -A new generation enters the Bonner gene pool…taking time to fight the odds…and more! Full Story
In spite of the recent reduction in the number of contracts held short in the commercial category, the true concentrated short position held by the largest traders in COMEX silver and gold, in percentage terms, has reached a dramatic new level. Full Story
Treasury Secretary Hank Paulson has proposed the Federal Reserve be given broad powers to regulate the financial industry. He could not have nominated a more incompetent body. The Coast Guard would do a better job. Full Story
By: Steven Saville, Speculative Investor - 15 April, 2008
The daily CRB Index chart displayed below reveals an upside blow-off leading to a mid-March peak, followed by a sharp decline and then a rebound. If we are correct to view the March peak as the intermediate-term variety then the current rebound should lead to a secondary (lower) high within the next couple of weeks and then a decline to a new multi-month low. Full Story
By: Richard Daughty, The MOGAMBO GURU - 15 April, 2008
This amazing phenomenon proves either that the government's Plunge Protection Team exists and is massively operating to intervene in the markets, or that people are truly idiots. Or maybe delightful little fairies guard our dreams and protect us in life! Full Story
By: Bill Bonner & The Daily Reckoning Crew - 14 April, 2008
-The increased price of greasing the whole machine…written down, written off, and inflated away… -Pity the poor who have to eat…"late, degenerate capitalism" at its finest… -Homes wilt like lettuce in the Vegas sun…the Olympic torch passes by Daily Reckoning offices…and more! Full Story
By: Julian D. W. Phillips, Gold/Silver Forecaster - Global Watch - 14 April, 2008
Most commentators we now read are taking the potential I.M.F. gold sales as a foregone conclusion. With the unknown quantity of the U.S. Congress [who are fully aware of just how good an investment gold has been and will likely be], who blocked the sales last time it was proposed, the sale is by no means a foregone conclusion. But of far greater importance is the question of how these sales could affect the gold price. The answer is exceptionally positive, after we consider the views of the I.M.F. itself on just how the sales will be orchestrated. Full Story
YOU CAN LINK the historic surge in Gold Prices starting mid-August 2007 to many apparently disparate things. Pick the right link, and you might be able to tell whether it's worth you buying or holding gold today. Full Story
As suggested in our last meeting, you can fool some of the people some of the time, but you apparently can’t fool investors anymore, evidenced by the failure in attempting to engineer a dollar ($) rally. The question then arises however, is this week’s failed $ rally the result of relative economic weakness in the States, where it’s perceived an extended recession has commenced; or, is this just the result of continued ‘party line talk’ out of the European Central Bank (ECB)? Full Story
By: John Browne, Euro Pacific Capital - Senior Market Advisor - 14 April, 2008
Last week, General Electric one of the finest companies in the world and an American icon, announced a major fall in earnings. Amazingly, the bad news surprised Wall Street, and GE shares fell 13 percent in a single day. Some surprise! Full Story
Greenspan did another media tour last week, this time defending his legacy in the Financial Times, Wall Street Journal, and on CNBC Television. Unfortunately the story from Greenspan was much the same: he reiterated that the financial markets are best left to self-regulate, and that investors around the world (not the Fed) took control of long-term interest rates thus leading to the U.S. housing bubble. Full Story
By: David Galland, Managing Director, Casey Research, LLC - 14 April, 2008
Many people blame inflation on higher prices of gasoline, wheat, copper, or what have you. This is an old, idiotic, and tragic economic fallacy. It’s idiotic because it confuses the consequences of currency inflation with its cause. And tragic because it blames inflation on those who produce real wealth, as opposed to the government, which is the actual cause. Full Story
By: Jennifer Barry, GlobalAssetStrategist.com - 14 April, 2008
When it bottomed at $7 per pound in 2001, uranium was one of the most derided commodities on earth. The most common associations with uranium were Chernobyl and bombs. Environmental protesters were calling for the shuttering of nuclear reactors, and plants continued to be mothballed. Full Story
The really cool thing about Phillips’ article is that he cites as his main source none other than John Williams of Shadow Government statistics. Williams is already a folk hero in sound money circles, where his numbers are seen as far more trustworthy than anything coming out of the Fed or Treasury. To see him given this much respect in Harper’s means the idea that we’re being conned on a vast scale is no longer the paranoid fantasy of a few lonely gold bugs. Now it’s the conventional wisdom. Full Story
Instead of record highs in the financial markets and commensurate bonuses, the closing down of hedge funds and the laying off of workers in the financial sector is now the normal news. It will not, however, be the same next Christmas. It will be worse. Full Story
A key rule for all who trade the market is don’t fight the Fed. And the central question for those who recognize this is, what will the Fed do next? From the time that Bernanke astonished conventional opinion by cutting rates last September in the face of a collapsing dollar, the two questions on everyone’s mind have been: how far, and how fast? Full Story
Although gold closed the week about 1.2% ahead of last week it still seems to be going nowhere. Over the past month it has been tracing a lower low and lower high scenario. It looks like it is about to go into its next lower low phase but let’s check the charts and indicators. Full Story
1st Hour: Headline news & market forecast. Spotlight Picks with big dividends. The International Forecaster and Chris Waltzek answer listener questions. 2nd Hour: Congressman Ron Paul Full Story
By: Bob Chapman, The International Forecaster - 13 April, 2008
The bagging of the Bear, Bear Stearns that is, by the Illuminati, was a watershed event. Not only has this event confirmed many of our predictions and interpretations concerning recent financial events, it has shed light on what the self-proclaimed Lords of the Universe have planned for their serfs in the near future, as well as for non-insider financial institutions. Full Story
In this report, I am going to present an astounding document. You have not heard of it. It is at the heart of the current residential real estate crisis. It has to do with liar loans. Full Story
Gold is in a strong uptrend and although it has broken its downtrend Gold is bumping against resistance from $940 to $950 and the 50 day MA. This is truly great action and I would love to see Gold come down to $900 and ensure stronger support there, even testing its recent low of $875 would do. Full Story
By: John Mauldin, Millennium Wave Advisors - 13 April, 2008
Are we in a bull, a bear, or a cowardly lion market? As we will see, the answer can make a huge difference in your investment portfolio. This week I am at my Strategic Investment conference in La Jolla. About four times a year I take a break from writing the letter and bring in a guest writer. This week Thoughts from the Frontline will have the very distinguished analyst and author Vitaliy Katsenelson. Full Story
Gold had a pretty good week, closing up just over 1%. The signals are mixed, however, both on the daily chart and on the weekly chart; as well as the comparison between the daily and weekly charts. Full Story
By: Richard Daughty, The MOGAMBO GURU - 13 April, 2008
This same bankrupt America is getting ready to send out $160 billion in 'economic stimulus' checks, where the government is literally giving people free money even though the government is borrowing like crazy just to keep afloat, which means that we that are truly, truly toast. Full Story
We’ve dissed the news media at every opportunity because they failed so miserably to report on the problems that have caused the economy to implode. Newspapers like The Wall Street Journal and The New York Times should have known better all along, but instead they served up the kind of drivel that reads like rewritten press releases from the Government and the Federal Reserve. Full Story
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