The Impending Second Great Depression

[jond]

Great post jonebone. So basically one of the key historical factors in gold price is what is more attractive for the safe money, TBills or Gold. Gold only matchs inflation, so if TBills beat inflation that's the better 'bet'. Now one thing we might need to factor in in 2009 is international investors. They also have the currency difference to take into account. If the USD drops 40% over 10 years relative to their currency, and they're holding 4% US TBills, they're losing shit tons of money.

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[FrreeeBird]

#1. For long term comparissons you're better off looking at the yields on t-bonds, t-bills roll over in less than a years time and aren't nearly as sensitive pricewise to inflation and rate expectations (and changes) as are longer termed securities.

http://en.wikipedia.org/wiki/United_...asury_security

Also, you're dead wrong about inflation coming, go look at the M3 destruction that's taking place, the amount of credit being destroyed is FAR outpacing the amount of money the fed/treasury have added into the economy.

[Kelly.]

Originally Posted by RebornGSR

http://www.latimes.com/business/la-f...,2028140.story


HAHAHAHA.

That's horrible. I guess that's what happens when you're up to your ears in bond debt?

Lets just borrow it from the taxpayer, they're dumber than the bankers!

i dont understand how that is even legal?
what to stop them from upping it to 20% 25%?
"hey, we are just giving it back to you at the end of the year"

also, i thought paying into taxes more then your supposed to (ie claiming 0, then 1 at the end of the year) wasnt legal (although not enforced)

[Hatchd]

Originally Posted by Kelly.

i dont understand how that is even legal?
what to stop them from upping it to 20% 25%?
"hey, we are just giving it back to you at the end of the year"

also, i thought paying into taxes more then your supposed to (ie claiming 0, then 1 at the end of the year) wasnt legal (although not enforced)

You can do whatever you want with your withholdings throughout the year. All they care about is that you paid in enough and/or they get their money from you come tax time. If you are a business you are forced to make quarterly remittances and if you don't you will pay penalties/fees with it for not withholding/paying the proper amount throughout the year (in very simplified form)

[FrreeeBird]

http://www.zerohedge.com/article/ano...mprobabilities

cliffs: The SEC is completely worthless and Goldman Sachs is a criminal organization

[xtrac1]

Isn't that the same website that predicted GE would be bankrupt back in July?

[Kelly.]

Originally Posted by Hatchd

You can do whatever you want with your withholdings throughout the year. All they care about is that you paid in enough and/or they get their money from you come tax time. If you are a business you are forced to make quarterly remittances and if you don't you will pay penalties/fees with it for not withholding/paying the proper amount throughout the year (in very simplified form)

so if a single person living in cali is claim one (like you are supposed to) and he is currently getting the correct amount taken out of his check, how can the state just take another 10%

just doesnt seem legal to me.

i wouldnt be surprised to see someone sue and said "with the extra money they took from me, without my consent, i lost $xxx amount in the market"

[Hatchd]

Originally Posted by Kelly.

so if a single person living in cali is claim one (like you are supposed to) and he is currently getting the correct amount taken out of his check, how can the state just take another 10%

just doesnt seem legal to me.

i wouldnt be surprised to see someone sue and said "with the extra money they took from me, without my consent, i lost $xxx amount in the market"

Oh that part doesn't seem legal to me either. I was just coming from the tax payers POV. I think it' absolutely ridiculous what they're doing. They're basically forcing people to give them a 0% interest loan on top of the other 0% interest loans that they already get with the "normal" taxes.

[Kelly.]

Originally Posted by FrreeeBird

http://www.zerohedge.com/article/ano...mprobabilities

cliffs: The SEC is completely worthless and Goldman Sachs is a criminal organization

i wonder how much of this is driven by them front running customers.
that was never dealt with was it?

[Rguy]

Originally Posted by FrreeeBird

http://www.zerohedge.com/article/ano...mprobabilities

cliffs: The SEC is completely worthless and Goldman Sachs is a criminal organization

If you can't beat em, join em.


Wanna apply for a job at GS with me? Im gonna look into internal IT positions.

[Whats Up DOHC]

Originally Posted by FrreeeBird

http://www.zerohedge.com/article/ano...mprobabilities

cliffs: The SEC is completely worthless and Goldman Sachs is a criminal organization

You ever think GS might just be that damn good?

How else could they perform so well so consistently?



You just HATE them, cause you AIN'T them

[Rguy]

Freebird's a playa hata!

[FrreeeBird]

Originally Posted by Rguy

If you can't beat em, join em.

Wanna apply for a job at GS with me? Im gonna look into internal IT positions.

I've thought about it, but I'm learning visual studio amongst other things, trying to move away from ponzi schemes, I mean finance and investing.

[FrreeeBird]

Originally Posted by Whats Up DOHC

You ever think GS might just be that damn good?

How else could they perform so well so consistently?



You just HATE them, cause you AIN'T them

Speak not of what you don't understand, kthxbye.

[FrreeeBird]

Originally Posted by Rguy

Freebird's a criminal hata!

Fixed.

[FrostyDC4]

Does anyone think its odd for the banks to be adding to their short gold position instead of covering despite the rising price?

[FrreeeBird]

Originally Posted by FrostyDC4

Does anyone think its odd for the banks to be adding to their short gold position instead of covering despite the rising price?

I read somewhere that JPM is up to their eyeballs in silver shorts. Deflation baby! It's a comin!

[jond]

Originally Posted by FrreeeBird

I read somewhere that JPM is up to their eyeballs in silver shorts. Deflation baby! It's a comin!

Silver is up over 60% for the year isn't it. Would suck to have shorted that....
I wonder where they bought in...

[Kelly.]

Originally Posted by FrreeeBird

I read somewhere that JPM is up to their eyeballs in silver shorts. Deflation baby! It's a comin!

im guessing that means they sold silver certificates earlier this year in hopes of buying them back at a lower price?

<- not hip on the banker lingo.

i find that hard to believe since metals seem to go up in value when the dollar goes down. even a IT guy knows that

[accord95vtec]

Interesting tidbit KD mentioned... WTF

http://wallstreetexaminer.com/2009/1...on-fed-report/

The Treasury finished up a light week with a 4 week bill auction that drew another wave of panic buying keep the rate near zero. There’s no real sign of a letup to the mania, as terrified investors continue to seek the “safety” of the shortest term Treasuries. Panic behavior of this nature always ends badly. Another anomaly of note is the fact that 10 year Fannie paper is now yielding less than 10 year Treasuries. This is another sign of mass psychosis. Unfortunately, the source of the infection has been Bernanke’s insane policy of piling up risky MBS paper on the Fed’s balance sheet. Wave after weekly wave of Fed buying has created one of the most ridiculous market distortions in history. Unfortunately, the problem it was designed to solve, the housing market collapse, isn’t responding.

[FrreeeBird]

Originally Posted by accord95vtec

Interesting tidbit KD mentioned... WTF

http://wallstreetexaminer.com/2009/1...on-fed-report/

Jonebone see's this as a sign you should buy a house.

[accord95vtec]

^LOL.....oh, you can get by without your crutch? I think not....

Watching an author on the Tavis Smiley Show (was watching BBC)....talking about what the Frontline episode (Summers, Geithner, etc still having a job after repealing Glass-Steagall) and about GS being heavily infiltrated.

"It Takes a Pillage: Behind Bailouts, Bonuses, and Backroom Deals from Washington"

http://www.amazon.com/Takes-Pillage-.../dp/0470529598

Hmmm....

[Kelly.]

$8000 housing credit extended to first time buyers and $6500 for a person that is selling a house they have lived in for at least 5 years and buying another.
extended through april, but now you just have to have to be under contract by april. basically extending it jun.


yea for propping up the housing market for longer.
the first round cost and est 8 billion, this next round is est to cost 10.5 bil

[falcongsr]

that's cheap, we could bail out some too fail to fail banks for that amount.

[Whats Up DOHC]

Originally Posted by FrreeeBird

Speak not of what you don't understand, kthxbye.

Sarcasm... it eludes you

I know a kid who works for GS... he didn't apply for it... and to put it nicely is in no way a business person

I am sure things will eventually unravel.