Archive for August, 2007

Friday, August 31st, 2007

Why I Don’t Short This Market Despite The Bad News

A few people have e-mailed and asked why if I’m so sure that the markets will drop, why I don’t short the market. The answer to that question is simple: We don’t have free markets anymore. The announcement by Bush to “swoop” in and save poor helpless home owners with guaranteed loans is exactly the […]

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Friday, August 31st, 2007

The News Keeps Getting Worse

Geez.  Everyday, a new headline emerges that begins to put things in perspective of how bad the sub-prime mess is impacting financial markets.  The latest headlines, “Freddie Mac plunges as housing crisis rumbles on” and “Leading lender likens US credit crisis to Great Depression” are just a couple this week. The sad truth however, is […]

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Thursday, August 30th, 2007

The Fundamental Flaw of Capitalism

If you’ve read my blog for some time now you know that I’m a capitalist at heart but the sub-prime fiasco is bringing back memories of my young high school days in which a group of friends debated the pros and cons of capitalism, socialism, communism. I always liked to play devils advocate so I […]

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Wednesday, August 29th, 2007

These Markets Are Scary, Why You *should* Be Afraid

There are perennial cheerleaders in the finance world. Normally, the perennial cheerleaders are those people that have a direct interest in keeping YOU buying in any market: good, bad, flat. Why? Because they make money when you buy by charging you fees, commissions, and other charges that siphon money out of YOUR account into THEIRS. […]

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Tuesday, August 28th, 2007

The Fed is Caught Between A Falling Dollar & Runaway Inflation

It’s the age old catch-22 for the Fed. Everyone and their mother is begging the Fed to lower rates. Let’s run through the scenarios. If the Fed lowers the rate from 5.25% to 5% then “easy” money starts flowing again and the speculative bubbles re-emerge but that’s not the worst part. The US Dollar would […]

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Monday, August 27th, 2007

My Quick Reference Sheet For ETFs inside the ETF-Cashinator™

I had a few people asking me questions about the ETF-Cashinator™ and the ETFs that I invest in so I whipped up this quick reference guide.   The main criteria for inclusion in my ETF-Cashinator™ are: Average daily volume of at least 100,000 shares ETF must have an options market ETF is from major market maker […]

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Sunday, August 26th, 2007

Oh My God, Look At This…

This is so strange.  Billions being bet on market falling in September!  Check out the image!   And check out this link. It’s PANDEMONIUM! If the market tanks, don’t say no one knew anything because I’ve never seen this kind of volume on such deep in the money calls.  It’s PANDEMONIUM! As a reminder, I’m 100% […]

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Friday, August 24th, 2007

FDIC Only Insures $44,530.80 Not $100,000 As You Might Think

I know what you’re thinking. “Rich you idiot, FDIC insures $100,000 and not $44,530.80. Have you gone nuts?” No, I haven’t gone nuts, while FDIC does technically insure $100,000 per depositor, the real purchasing power of 100k has eroded since 1980 down to $44,530 in today’s 2007 inflation adjusted dollars. Does this surprise you? Ever […]

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Thursday, August 23rd, 2007

Edgar Cayce Predicted Market Calamity for 2007, Mayans for 2012

I have a confession to make, I love reading philosophical, historical and prophetic books. I have an Edgar Cayce book which I need to revisit but I distinctly recalled he had predicted various economic cycles and I dug up this quote while doing some research for this post, “Cayce described a long term economic cycle […]

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Thursday, August 23rd, 2007

PF Blogger Peer Pressure Continues, Epitome of GroupThink

Wow, more bashing of Trent at The Simple Dollar but this time by JPL at AllFinancialMatters. There are many interesting comments but this one caught my eye, “Consider that the dozens of comments disagreeing with you were made by folks more objective about the way your post reads than you could be, and that some […]

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