It's reality. The only reason why people are 'speechless' over this (assuming ignorance or it was unexpected) is because they refused to be realists about this all along. Extend and pretend has been the motto of centralised planners the world over for so long now, they actually believe their propaganda and are stunned to silence when reality comes home. I have absolutely no sympathy for those who are about to burn. None.
No, he is a trader, not an investor. There is a world of difference and for a trader putting your money in bonds temporarily isn't necessarily a stupid idea at all. It's all about your timeframe.
Well it's been a safe trade for a while now - you're essentially frontrunning the fed. One day it will end in tears of course, but that's the nature of all trades.
He's a short term trader. He'll play the short markets, but long I don't think he'll be honestly staying in the USD. He trades the volatility in the market and whilst there's some reality aspects there he's bang on with, he has a fairly micro view of the markets based around his own trading cycles. Long term anyone holding US Govt bonds are going to get roasted, which is why they're being dumped the world over forcing the US Govt to buy them. He's absolutely right on the core axiom though. This extend and pretend BS is really just that and it's all going to eventually end in tears. This hammering the living crap out of commodities across the market right now I strongly believe is simply a market play by the big boys in preparation for what's to come. Best buying opportunity in 2011 so far IMHO, although it pains me I don't have spare fiat to dip in right now. If you have the means though, definitely a good time to think about backing up the truck.
Any trade can go against you so my sentiment is as much about trading as treasuries and the dollar. Rickards summed it up well in one of his interviews. zero interest rates means volatility and that can burn you as much make you money if not more. Its why I just accumulate PMs.
He took a shot at Goldman Sachs, I expect him to be in a horrible car accident soon. On a serious note, he says prepare yourself, how? What does this mean for PM's etc?
Maybe, but they'd think he's crazier than they already do, so the best he could do is throw out a lead to those interested enough.
he seemed to be suggesting protection with a hedge strategy. eg if you own $50000 of BHP stock it may be a good time to consider covering it with a longer dated put option to a similar level of coverage. Its like paying for insurance. make sure you know what you are doing but. Get advice or ask your broker.
BHP is not likely to go bankrupt though. You'd want puts on bank stock maybe unless you mean you just want to protect your capital gains. Then your insurance is eating away your potential gains as well.
Too complicated lol If you really think markets are gonna crap it's pants as badly as it sounds, the easiest way to have a punt is to buy some long expiry OTM put options for cheap on the banks.
i love the ladies face at the very last second. a little shocked and confused. Can see here brain trying to compute what has just been said. A slight flutter in the heart (panic) All within a second she is visioning all her savings, investments etc and what to do with them. Unfortunately over a cup of tea with her co workers they will have a laugh about that interview and carry on as normal.
It's called Normalcy Bias. http://en.wikipedia.org/wiki/Normalcy_bias You will see this again and again and again and again through the media and social outlets of discussion until it's generally too late to do anything about it. Human beings like to think they've evolved mentally because we have ipods, air travel and atomic bombs, but the stark reality is on many fundamental levels we're barely above those primates who still live in trees. We are conditioned like human cattle to think a certain way, to react a certain way, to function a certain way. Freedom isn't just a measure drawn through your economic/financial standing. It's as much a measure of your capacity for independent and rational thought that sets you free as much as how your bank balance allows you to live. The sad reality is that we (as a collective) have ceased to function as thinking beings and are instead driven by conditioned base instincts, namely to consume and provide labor. Enslavement of mankind is very startling when you first really see it, because it's there in front of your eyes all along and yet most never even see it. If it wasn't for the horrible tragedy of it all, you'd have to marvel at the perfection the system has devised over generations to create a prison that humans will willingly accept.
Normalcy Bias! Wow thanks. You sound a lot like Chris Duane from Dont Tread On Me. I like what he has to say.
Yes, I saw her trying to shake it off and smile. She may have been told, through her ear thingy, to lighten up the end of it. It so helps to rapidly fade the memory of all the doom and gloom for the listeners, doesn't it! Sigh.... I don't have any fiat with which to back up the truck either.
