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Monday, December 10, 2012

Marc Faber, Peter Schiff, Peter Kinesa, Jim Rogers

Investors' Insights:
Week Ending Decenber 8, 2012 

"Investors' Insights"

Frankie: So Bring in the Clowns...

Whatever you think, treat these number with the  utmost care, and then toss then in the trash.Three quick reasons:

Questionable accuracy of accounting; as we have seen, many regulators and auditors are hired guns with severe limitations. Value adjustments lag the reality often by 18 to 24 months.

Limited predictive value as these are manipulated abstracts "premised on neo-classical economics". If the system worked, then the 2008 meltdown would not have occurred - it did. So what more do we need to say?

Interest rates must revert to historic means, invariably reflecting actual inflation. Hypothetically, mathematically adjusting these reported values using historic- normative interest rates would wipe out 30% of asset values; putting 90% of the system underwater. A mean reversion is 100% inevitable - the doo doo will hit the fan - and be Much Bigger than 2008.

That's the short story. So where are the clowns?

First Financial Insights
December 6, 2012

Start Spreading the News - New York, New York...

Marc Faber: Oil Doesn't Have a huge downside risk In the short term, market emotions dictate day to day pricing, for the most part. In the...

These numbers conjure the darkest nightmares of things to come.

First Financial Insights
December 5, 2012
A Horror Story

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: Ho...

This character is the Glenn Beck of finance, investing and economics. Peter's videos rival vaudeville comedies; literally littered with nonsense, incoherence, absurdity and neurosis. One positive is that his doctors reported there was nothing to report from his last brain scan. Well, we could have saved them the effort.

Following Peter's blogs provides great insights into what not to say or believe. So you are forewarned, as we will not comment on all their silliness.

First Financial Insights
December 4, 2012

What there is nothing there?

We have. But the question is how far to downgrade the world's reserve currency? Which leads to the bigger question: How long should we consider this as the currency of last resort? Not an easy answer, however when it loses this special status -- Watch Out! That would be the last stand, clearly signalling the fall of the American Hegemony. The implications are immeasurable.

But if you haven't already done so in your own mind, do so now!

First Financial Insights
December 3, 2012

Don't ask... Don't Tell

Marc Faber: The Market is going down because corporate profits will begin to disappoint Appreciating that markets are in an unprecedented ...

Every one has different reasons for predicting the demise in corporate profits and the stagnation of global economic growth. Physical constraints are paramount, hence we fully behind the more rational physics asserted by Dr. Kinesa.

First Financial Insights
December 3, 2012

One Profitable Planet...For Now!