Archive | May, 2012

Strong Dollar Spells Death for Commodities

Panic is on deck, to use the baseball terminology that my foreign readers are often attempting to decipher. That is the only conclusion one can reach after getting gob smacked by the price action this morning. Copper got spanked for eight cents, oil burned $2, gold shed another $26, and silver puked 70 cents. The […]

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ETF Scam of the Week

When I heard that the managers of exchange traded funds were raking in huge fees from lending out shares in their index portfolios I thought “That’s great, the managers are really working hard to maximize returns for their shareholders.” These shares are borrowed by hedge funds which then then sell short. Then I found out […]

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The Zhanjiang Kids Organization

I follow a broad range of unconventional, but highly useful leading economic indicators that gives me a decisive edge when predicting the future direction of global financial markets. One of them has started flashing a warning sign. I fund an orphanage in remote Zhanjiang, in China’s southern Guangdong province near Hainan Island called The Zhanjiang […]

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May 15, 2012 – Quote of the Day

“I view Euro as a doomsday machine,” said a European economics professor.

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The Tip of the Iceberg

JP Morgan (JPM) just gave us the preview of the next financial crisis. A surprise, hidden $2 billion trading loss in esoteric foreign derivatives at on offshore branch by America’s premier bank is exactly what the markets did not want to hear right now. The London whale has beached itself. Although no one has mentioned […]

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May 14, 2012 – Quote of the Day

“Republicans and Democrats won’t engage in any kind of austerity because there is no consequence for the fiscal profligacy they are allowing today. With the Fed taking 60% of the Treasury’s bond issuance they are pulling the policeman off of the freeway so everyone can keep speeding. Until the bond market moves, you are not […]

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Special Note to Australian Readers

Readers of the Diary of a Mad Hedge Fund Trader down under are welcome to join the online “Secure the Future” conference which I will be participating in through the miracle of the Internet. My friend, Greg Owen, created this organization to educate investors in the opportunities available in international markets by bringing in industry […]

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Why is Gold Broken?

Gold bugs are puzzled by the recent collapse in the price of the barbarous relic. Physical demand has been outstripping supplies for some time now and threatens to reach all-time highs. Demand for 100 ounce gold bars by the 1%’ers is as high as it has ever been. Negative real interest rates for almost all […]

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Oregon Becomes the First All Electric State

As of this week, Oregon will become the first state to complete a chain of charging stations that will enable electric cars to travel from one end of the state to the other. It completed the last of eight 440 volt fast charging stations that allow travel for the full 310 miles on the beaver […]

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May 11, 2012 – Quote of the Day

“A rich guy never has to pay for anything”, said Berkshire Hathaway’s Warren Buffett, about his friends’ practice of giving him free ties to replace his old, battered ones.

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Check Out (HDGE) to Limit Downside Exposure

While scouring the markets looking for great ways to participate in the current slide in the equity indexes, I discovered a real gem. The Advisor Shares Active Bear ETF (HDGE) offers a rifle shot at the true garbage in the market, low dividend companies with deteriorating fundamentals. Run by former Bass Brothers associate Brad Lehmansdorf, […]

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An Afternoon With FBI Director Robert Mueller

I immediately recognized Robert Mueller as the kind of no nonsense, fellow ex-Marine, Vietnam Vet that he was, the kind of officer who used to rip your guts out for disobeying a direct order, which in my case was frequently. President Obama thought this was the man you want for your Director of the FBI, […]

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May 10, 2012 – Quote of the Day

“The policies that we followed since the great crash of 2008 have been pretty darn good. It would be nicer if GDP were galloping at 4% or 5%. But we have had a complete resuscitation of the banking system. We’ve had the economy come back in a very significant way in all cases, except residential […]

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Euro Crash Warns of More to Come

A few years ago on the Old Square in Brussels, a delicious luncheon of moules marinières paired with an excellent white burgundy with some European Central Bank officials ran far longer than expected. They were attempting to convince me of the long term viability of the Euro, to no avail. That seriously delayed my departure […]

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Dinner With Robert Shiller

Yale professor, Robert Shiller, is the kind of imp like, peripatetic college professor you might expect to find in a Disney movie. Highly animated and jumping from one radical idea to the next it is hard to keep up with his stream of consciousness torrent of economic innovations. After a two-hour barrage, I was so […]

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