Posted on 12/23/2009 6:31:34 PM PST by FromLori
Absolute must read.
scribd document at site
It was a good read, but I doubt that Sprott Asset Management in Toronto will manage to push the dollar high again for the book binders, computer genuises and the like up there. They’ll just have to continue serving and enriching oil men, miners and hewers of wood (which ain’t all that bad). ;-)
“Antonio Maria Costa, head of the UN Office on Drugs and Crime, said he has seen evidence that the proceeds of organized crime were “the only liquid investment capital” available to some banks on the brink of collapse last year. He said that a majority of the $352bn (£216bn) of drugs profits was absorbed into the economic system as a result.”
http://crooksandliars.com/susie-madrak/un-advisor-drug-money-propped-banks-d
The most important part of our economy (judged by it’s ability to make the Feds jump on command) is nothing more than moving pieces of paper with no intrinsic value of their own back and forth via the Banks and Wall Street. Derivatives are up over $300 trillion, backed by nothing at all. So yeah, it’s all a Ponzi scheme.
FROM ARTICLE——>>>
We are now in a situation, however, where the Fed is printing
dollars to buy Treasuries as a means of faking the Treasury’s ability to attract outside
capital. If our research proves anything, it’s that the regular buyers of US debt are no
longer buying, and it amazes us that the US can successfully issue a record number
Treasuries in this environment without the slightest hiccup in the market.
Perhaps the
The stock market bubble bursting was aweful to behold. As was the commodity bubble, the real estate bubble, and the credit market bubble. When the government bubble bursts, it will make the others look like a child’s game.
Some of us have been literally screaming about this for months now. The stock market just keeps going up-up-up, driven by oceans of fiat cash, created so that the US government could spend $1.7 trillion this year alone that it didn’t have. No one is actually buying our debt at zero percent; they are just borrowing it to buy commodities and foreign-denominated securities. It will not end well.
The stock market just keeps going up-up-up, driven by oceans of fiat cash, created so that the US government.....
The investors I have spoken to are happy to see their stocks go up but they tell me the market is up not due to an increase in real world economic activity. Not even in anticipation of of such an increase. But that the stock market is up due to the Federal Gov’t printing press. So they know what the score is
Buy and hold is a good strategy if you are the rare investor who can watch your portfolio drop 80% and/or fall for a decade or two without panicing out.
The second sentence of what you said applies. As far as buy and hold for a few decades Warren Buffet has done OK that way. There is tons of propaganda from advisors to do it that way. Not that I agree w that approach but....
You 'get it'...
I agree with your term "propaganda". Buy and hold maximizes assets under management, which, by some strange coincidence, is how most money managers are compensated.
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