"George" our Ivy league analyst from Merrill Lynch.
Upon hearing about Bank of America's acquisition of his firm, our named whiner stated, "I was shocked. I was screaming.
One of my friends at Bank of America texted me, 'Hey, we might be buying you guys.'
I was in denial. You see, Merrill has a much better repuation than a commercial bank like Bank of America. I was shocked I would be joining a lower-tier commercial bank. There's a feeling, 'I didn't go through this whole interview process to work at a commercial bank."
Note to George, during the bear market of the 1970s many of your Ivy breathren drove cabs in Manhattan to make ends meet. Oh and Merrill hasn't had a great reputation in a long time either, pal.
Reality check for America, a supposed captain-of-industry to be can't come to grips with the fact that he will still have a cushy job, likely forecasting EPS growth to the penny, making buy, hold, and sell recommendations that are surely to be wrong, like most of the garbage research that comes out of Wall Street firms.
Thankfully he will never have to work with real men at the old Beth Steel plant in Sparrows Point, or any number of jobs that hard working folks do. Hell, with that whining attitude he'd get beat up and have his lunch money stolen if he ever had to work around real men.
Read more about "George's" angst here at the Ivygate Blog.
http://www.ivygateblog.com/2008/09/i-was-shocked-i-would-be-joining-a-lower-tier-commercial-bank-life-after-buyout
This Bud is for you George, proving that yes, we have raised a nation of spoiled and soft youth.
Oh and don't forget your ballet shoes. . . Sissy!
Wednesday, September 24, 2008
Monday, September 22, 2008
I Thought I Woke Up in France
Indeed Goya's Third of May 1808 which sits a top of our website is representative of the destruction of free markets by our Comrades at Fed and Treasury et al . . .
Senator Bunning gave us the brilliant quote which is the title of this post.
There is no sense in highlighting all of the moronic socialist nonsense that the government and regulators have burdened us with as of late. Suffice is to say that one day, as opposed to not being able to short sell in order to proctect one's capital, we may wake up unable to sell our stocks. Sorry, the exchanges have been closed and Big Brother has banned all sales of stocks . . . for our own protection of course.
Mark Gilbert of Bloomberg has penned an excellent article exposing the ratings agencies asleep at the wheel again! More banks to be downgraded... surely yes, but he poses a better question. isn't it time to downgrades US sovereign debt?
http://bloomberg.com/apps/news?pid=20601039&sid=arxBaDnXNMxY&refer=home
Logic says of course. Our never ending war on terror, housing bail outs, soon to be automobile industry bailouts, they will all be handled by Mr. Guttenberg's lovely printing press.
Senator Bunning gave us the brilliant quote which is the title of this post.
There is no sense in highlighting all of the moronic socialist nonsense that the government and regulators have burdened us with as of late. Suffice is to say that one day, as opposed to not being able to short sell in order to proctect one's capital, we may wake up unable to sell our stocks. Sorry, the exchanges have been closed and Big Brother has banned all sales of stocks . . . for our own protection of course.
Mark Gilbert of Bloomberg has penned an excellent article exposing the ratings agencies asleep at the wheel again! More banks to be downgraded... surely yes, but he poses a better question. isn't it time to downgrades US sovereign debt?
http://bloomberg.com/apps/news?pid=20601039&sid=arxBaDnXNMxY&refer=home
Logic says of course. Our never ending war on terror, housing bail outs, soon to be automobile industry bailouts, they will all be handled by Mr. Guttenberg's lovely printing press.
All is Well in Iraq? The Powder Keg in Pakistan
Despite reassurances from the administration that the "War on Terror" is going well, there are numerous reports to the contrary. While the situation maybe improving in Iraq, rest assured that there will be no major US troop withdrawls from the Mid East anytime soon.
The Taliban is emboldened in Afghanistan and now Pakistan appears to be on the verge of disintegrating into if not a full civil war at least a much much more dangerous place. The US friendly president was targeted at the Marriott in Islamabad which killed over 50 people.
http://iht.com/articles/2008/09/22/asia/23pstan-bomb.php
We should remember that despite the Bush administration's constant warnings about Iran, Pakistan is already a nuclear armed state.
We do not envy President Zardari one bit. He is caught between his patron, the US government and his own people. US missiles falling into Pakistan are not making us any friends in the region, rest assured.
http://iht.com/articles/2008/09/22/asia/pakistan.php
Most investors including Wall Street's "high priests" are utterly oblivious to history and geopolitics, as such subjects are not taught in MBA school. Therefore we do not expect analysts, fund managers, and other assorted charlatans that last studied said subjects in History of Western Civ 1 or Poly Sci 101 to have any idea about the implications.
We will draw them for you: higher budget deficits, a never ending war, more destruction of capital, and a front which is destined to draw US ground troops into Pakistan. of course expect that such adventures will paid for in only one way, by higher taxes and more money printing.
This is why we own selected energy and precious metal shares.
The Taliban is emboldened in Afghanistan and now Pakistan appears to be on the verge of disintegrating into if not a full civil war at least a much much more dangerous place. The US friendly president was targeted at the Marriott in Islamabad which killed over 50 people.
http://iht.com/articles/2008/09/22/asia/23pstan-bomb.php
We should remember that despite the Bush administration's constant warnings about Iran, Pakistan is already a nuclear armed state.
We do not envy President Zardari one bit. He is caught between his patron, the US government and his own people. US missiles falling into Pakistan are not making us any friends in the region, rest assured.
http://iht.com/articles/2008/09/22/asia/pakistan.php
Most investors including Wall Street's "high priests" are utterly oblivious to history and geopolitics, as such subjects are not taught in MBA school. Therefore we do not expect analysts, fund managers, and other assorted charlatans that last studied said subjects in History of Western Civ 1 or Poly Sci 101 to have any idea about the implications.
We will draw them for you: higher budget deficits, a never ending war, more destruction of capital, and a front which is destined to draw US ground troops into Pakistan. of course expect that such adventures will paid for in only one way, by higher taxes and more money printing.
This is why we own selected energy and precious metal shares.
Speaking of Destruction - What About Junior Mining Stocks?
Even those of us that are experienced in trading junior mining stocks have been amazed at the utter destruction (pun intended) of the sector.
As of yet, Adam Hamilton of Zeal.com has given the best explanation of the sector's events.
Please follow the link to his article.
http://safehaven.com/article-11291.htm
The Most Special of Special Situations
Much of the chatter relating to Brazil's massive subsalt oil reserves has centered around the national energy champion Petrobras. Petrobras counts British Gas and Galp Energia as junior partners in these subsalt projects.
Less know is Galp Energia - the privatized assets of what was once Portgual's energy company. Galp has projects in Brazil and Angola, another emerging oil powerhouse. Galp is thinly traded on the pink sheets under ticker GLPEF.PK. The stock currently trades at $16.85 a share, down from a 52-week high of $28.00. As oil prices appear to have bottomed - at least for the time being - and well of its high we view Galp as an especially enticing speculation.
Jason Kenney an analyst at ING Bank described the company's Brazilian prospects as having a "transformational impact." We do not disagree with his assessment.
While rhetoric surrounding increased government ownership or even the a dilution of Petrobras, Galp, and BG's ownership of these subsalt reserves is certainly worrying, we view the threat of outright nationalisation or outright theft to be rather low. Please read the Bloomberg article below for greater clarity.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aU1eORtnAxmA
We are buyers and indeed willing to speculate on Galp's pink sheet listed shares as offering potentially phenomenal returns going forward.
As always we are not making recommendations for anyone, but outlining our personal investment decisions. We are not registered investments advisors and do not give investment advice.
Less know is Galp Energia - the privatized assets of what was once Portgual's energy company. Galp has projects in Brazil and Angola, another emerging oil powerhouse. Galp is thinly traded on the pink sheets under ticker GLPEF.PK. The stock currently trades at $16.85 a share, down from a 52-week high of $28.00. As oil prices appear to have bottomed - at least for the time being - and well of its high we view Galp as an especially enticing speculation.
Jason Kenney an analyst at ING Bank described the company's Brazilian prospects as having a "transformational impact." We do not disagree with his assessment.
While rhetoric surrounding increased government ownership or even the a dilution of Petrobras, Galp, and BG's ownership of these subsalt reserves is certainly worrying, we view the threat of outright nationalisation or outright theft to be rather low. Please read the Bloomberg article below for greater clarity.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aU1eORtnAxmA
We are buyers and indeed willing to speculate on Galp's pink sheet listed shares as offering potentially phenomenal returns going forward.
As always we are not making recommendations for anyone, but outlining our personal investment decisions. We are not registered investments advisors and do not give investment advice.
Silver Stocks Worth Another Look
We are keen on Silver Wheaton (SLW) and SSRI (Silver Standard).
Silver Wheaton which purchases forward existing mine supply or silver that would be used as "credits" is highly leveraged to increased silver prices.
We also favor Silver Standard, which works on a land bank model (essentially having bought excellent silver properties when the meatal was at derpessed prices) , but appears well on its way to production.
Creative Destruction believes that investors with a high risk tolerance should favor these companies on rapid pullbacks resulting from short term sell- offs in silver prices and accumulate them for the future.
As always we are not making recommendations for anyone, but outlining our personal investment decisions. We are not registered investments advisors and do not give investment advice.
Silver Wheaton which purchases forward existing mine supply or silver that would be used as "credits" is highly leveraged to increased silver prices.
We also favor Silver Standard, which works on a land bank model (essentially having bought excellent silver properties when the meatal was at derpessed prices) , but appears well on its way to production.
Creative Destruction believes that investors with a high risk tolerance should favor these companies on rapid pullbacks resulting from short term sell- offs in silver prices and accumulate them for the future.
As always we are not making recommendations for anyone, but outlining our personal investment decisions. We are not registered investments advisors and do not give investment advice.
Our Favorite Bull Market
From the early 1970s until 1980 gold went from $35 an ounce to over $850 at its speculative peak. Silver from $1.25 to $50 during the Hunt brother's squeeze.
Rare coins at this time offer what we consider to be one of the most attractive value propositions we have seen in a long time. We believe that this is possibly the most ignored bull market in the world.
Steve Sjuggerud's outstanding Daily Wealth makes the arguement. Once this bull market is very much participated in by the 'average" man we would not be surprised to see many multiple times our investment.
http://dailywealth.com/archive/2006/aug/2006_aug_16.asp
We are accumulating MS 61 and 62 Double Eagles ($20 gold) of the St. Gaudens or Liberty Head variety and Morgan Silver dollars in the MS 63 and 64 condition. We like only the highest quality which is graded by NGC or PCGS ... ONLY.
We are particularly keen on MS 62 $20 Liberty Heads and MS 64 Morgan silver dollars. These two particular coins offer us excellent upside leverage, with more downside protection than even more highly rates Mint State (MS) coins. For speculators wanting added leverage MS 63 $20 Double Eagles and MS 65 Morgan silver dollars are worth a look.
Remember we have seen spectacular increases in high end real estate, contemporary art, modern furniture, European and American muscle cars, and rare wines. This is in our mind the most overlooked of all markets.
Rare coins at this time offer what we consider to be one of the most attractive value propositions we have seen in a long time. We believe that this is possibly the most ignored bull market in the world.
Steve Sjuggerud's outstanding Daily Wealth makes the arguement. Once this bull market is very much participated in by the 'average" man we would not be surprised to see many multiple times our investment.
http://dailywealth.com/archive/2006/aug/2006_aug_16.asp
We are accumulating MS 61 and 62 Double Eagles ($20 gold) of the St. Gaudens or Liberty Head variety and Morgan Silver dollars in the MS 63 and 64 condition. We like only the highest quality which is graded by NGC or PCGS ... ONLY.
We are particularly keen on MS 62 $20 Liberty Heads and MS 64 Morgan silver dollars. These two particular coins offer us excellent upside leverage, with more downside protection than even more highly rates Mint State (MS) coins. For speculators wanting added leverage MS 63 $20 Double Eagles and MS 65 Morgan silver dollars are worth a look.
Remember we have seen spectacular increases in high end real estate, contemporary art, modern furniture, European and American muscle cars, and rare wines. This is in our mind the most overlooked of all markets.
Open positions if Not Long
While the tide is clearly turning against free markets (namely) due to the fumblings of comrades Bernanke, Paulson and Frank, we do not believe this is the end of the world.
For our own accounts we have been long of gold for some time, we will recommend that investors dedicate no more than 10% of their capital, split between the Tocqueville Gold fund (TGLDX) and to the Market Vectors Gold Miners etf (GDX) , and to physical gold. John Hathaway has been piloting TGLDX since 1998 and we have been pleased with his stewardship.
Why do we like gold? The asset is under-owned and unappreciated. Mine supply is not expanding and as has often been written by luminaries such as Marc Faber and Doug Casey, it is the one currency that cannot be printed by any central bank. Gold is not anyone's liability.
History has shown us that all paper (fiat) currencies eventually return to zero. So we are prepared for the worst, but it is not necessary for us to receive a good return on our investment. Hard assets, especially gold deliver outstanding returns when "real rates" are negative. We expect the "real" rates offered by Fed funds, t bills, and money market funds to remain firmly negative for some time to come.
For our own accounts we have been long of gold for some time, we will recommend that investors dedicate no more than 10% of their capital, split between the Tocqueville Gold fund (TGLDX) and to the Market Vectors Gold Miners etf (GDX) , and to physical gold. John Hathaway has been piloting TGLDX since 1998 and we have been pleased with his stewardship.
Why do we like gold? The asset is under-owned and unappreciated. Mine supply is not expanding and as has often been written by luminaries such as Marc Faber and Doug Casey, it is the one currency that cannot be printed by any central bank. Gold is not anyone's liability.
History has shown us that all paper (fiat) currencies eventually return to zero. So we are prepared for the worst, but it is not necessary for us to receive a good return on our investment. Hard assets, especially gold deliver outstanding returns when "real rates" are negative. We expect the "real" rates offered by Fed funds, t bills, and money market funds to remain firmly negative for some time to come.
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