A Cow based Economics Lesson

SOCIALISM You have 2 cows. You give one to your neighbor. COMMUNISM You have 2 cows. The State takes both and gives you some milk. FASCISM You have 2 cows. The State takes both and sells you some milk. NAZISM You have 2 cows. The State takes both and shoots you. BUREAUCRATISM You have 2 […]

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February 24, 2012 – Quote of the Day

“We are witnessing the death of abundance and the birth of austerity for what may be a very, very long time,” said PIMCO managing director, Bill Gross, the world’s largest bond manager.

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My Favorite Stock to Short

Troubled Bank of America (BAC) certainly earned its title as the premier Dog of the Dow last year. It managed an appalling 58% decline in 2011, the worst of any of the 30 Index stocks. It only managed to stay above the crucial $5 level by a hair’s breadth, below which many pension funds are […]

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How to Avoid the Ponzi Scheme Trap

I spent a sad and depressing, but highly instructional evening with Dr. Stephen Greenspan, who had lost most of his personal fortune with Bernie Madoff. The University of Connecticut psychology professor had poured the bulk of his savings into Sandra Mansky’s Tremont feeder fund; receiving convincing trade confirms and rock solid custody statements from the […]

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February 23, 2012 – Quote of the Day

“I enjoy issuing Berkshire stock as much as I relish preparing for a colonoscopy,” said Oracle of Omaha Warren Buffet of Berkshire Hathaway (BRK/A).  

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China Joins the Quantitative Easing Club

The other shoe has fallen in China, with the People’s Bank of China’s move to cut bank reserve requirements by 50 basis points, the second time since November. The relaxation makes the Middle Kingdom a certified, card carrying member of the international quantitative easing club.  It also confirms the country’s time tested preference for announcing […]

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Risk Control for Dummies

Whenever I change my positions, the market makes a major move, or reaches a key level, I look to stress test my portfolio by inflicting various scenarios upon it and analyzing the outcome. This is second nature for most hedge fund managers. If fact, the larger ones will use top of the line mainframes powered […]

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February 22, 2012 – Quote of the Day

“The transition from a levering, asset-inflating secular economy to a post bubble delivering era may be as difficult for one to imagine as our departure into the hereafter,” said PIMCO managing director, Bill Gross, the world’s largest bond manager.

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Trade Alert – (MSFT) Update – February 21, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

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Trade Alert – (MSFT) February 21, 2012

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price.

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Nikkei Shows the Yen Move is Real

The Bank of Japan renewed its membership in the international quantitative easing club last week, announcing that it was substantially expanding its bond repurchases. Specifically, it will increase them from ¥55 trillion to ¥65 trillion, a jump equivalent to $830 billion. To understand how big this is, consider that Japan’s GDP is one third the […]

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An Evening With General Douglas Fraser

I never cease to be amazed by the intelligence provided me by the US Defense Department, which after the CIA, has the world’s most impressive and insightful economic research team. There are few places a global strategist like myself can go to get an intelligent, thoughtful forty year views, and this is one. Of course, […]

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February 21, 2012 – Quote of the Day

“The Fed only knows two speeds; too fast, and too slow,” said Nobel Prize winning economist Milton Friedman to me over lunch one day.  

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My Very Last Chance to Buy My Trade Alert Service at the Old Price

Due to a number of technical difficulties, many potential new subscribers were denied the opportunity to buy my award winning Trade Alert Service at the old price of $1,997 before the price increase. Among other things, the site crashed a few times because of the sheer volume of people attempting to sign up at once. […]

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The Long View on Emerging Markets

I managed to catch a few comments in the distinct northern accent of Jim O’Neil, the fabled analyst who invented the ‘BRIC’ term, and who has been kicked upstairs to the chairman’s seat at Goldman Sachs International (GS) in London. Jim thinks that it is still the early days for the space, and that these […]

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