Why stop at 5/3? You have posts like that from december of last year when you started that alias.

8/9/2011 6:18:56 PM

Good job Kris just ignore results.

My posts before that are predominantly addressing the economy and how it continues to get worse.

Without quantative easing the market must crash, period.

It would have happened years ago without QE.

But no matter. We just wiped out TWENTY MONTHS worth of gains in three weeks.

So I won on the way up and the way down. And you've got twenty months worth of posts that demonstrate you have no fucking clue.

I even posted when this all comes true you will try to spin it. But you can't spin this one doucher.

8/9/2011 6:32:57 PM

Quote :

"We just wiped out TWENTY MONTHS worth of gains in three weeks."

I don't know what you mean by that, but it is incorrect.
12/11/2009 - 8/9/2011 [+850.87 (+8.19%)]

Quote :

"So I won on the way up and the way down."

Where have you ever said anything but "sell". You always say sell. I don't say buy or sell, I have no reason to pretend like I should give people investment advice outside of "diversify".

Quote :

"And you've got twenty months worth of posts that demonstrate you have no fucking clue."

Challenge accepted. Show me one.

8/9/2011 6:57:39 PM

You done fucked up now, face. Paranoid theorists should *never* give a timetable. I've just set a reminder for December 31st 2016. If I haven't resorted to cannibalism in a post-apocalyptic Midwest turf war, you'll finally have to admit to the sky not falling. That is assuming Microsoft's servers aren't under a pile of skulls supporting Mount Doom.

And spare us platitudes like "I wish I were wrong.". I've been hearing this shit for decades.

8/9/2011 7:10:19 PM

I could be wrong by a year or two, its impossible to pinpoint that this far in advance, but it's on the way for sure.

No Kris, I said sell a few weeks ago look at the fucking posts.

You are wrong as usual. Enough out of you.

8/9/2011 7:36:27 PM

Well why were you telling us to load up on canned goods? They're all going to go bad by 2016.

Now I've got to eat 5 pallets of Bush's Baked Beans by August 2013.

8/9/2011 7:36:41 PM

UBS is getting in on this now. Andy Lees very well written

Quote :

" We are in this mess because of excessive leverage and excessive consumption, financed by excessively cheap real capital – (not just Bernanke & Greenspan but further back to the end of the gold standard, and in fact even before that as it was this misallocation of capital that forced us off the gold standard in the first place). If capital had been allocated productively, then by definition debt would fall as a percentage of GDP. Total debt may rise, but efficient allocation of capital would always mean the economy would grow faster than the debt as it means you are making a positive rather than negative real return on that capital. Whichever way you look at it, capital has been massively misallocated for years. How can that be when corporates report massive profits? The profits are based on paying their workers a salary that meant they could only buy the goods they made by borrowing; in other words, a massive unsustainable ponzi scheme that could only ever end up with default. Without the household debt accumulation, there would be no market to sell their products to, and without paying the workers sufficient, the debt would always have to default. This required a massive increase in financial innovation to keep the illusion of corporate profitability alive – (household debt was a way of delaying putting the true costs through the corporate P&L account and recognising the costs). Financial sector innovation is itself another form of capital misallocation, taxing people away from real innovation – (to keep the illusion alive, an ever greater percentage of economic output had to be allocated to this illusion machine) - helping add to the resource constraint we are in today. A lot of what are described as efficiency gains have been just the removal of levels of safety and the removal of innovation in the system. Innovation and ongoing operations are always and inevitably in conflict, with the most readily apparent conflict between short and long term priorities. A second handicap to innovation is the way efficiency is achieved by breaking down things into small repeatable tasks. This specialisation and repeatability is a company’s greatest strength, but it is also its greatest weakness. Innovation is neither repeatable nor predictable. It is non-routine and uncertain. (Book: The Other Side of Innovation). Low real interest rates support excessive consumption, taking money away from innovation and balance sheets. When the US started suffering from its peak oil in 1970, rather than innovation it turned to globalisation to tax the broader global resource balance sheet, just as Britain and Europe had done 100 years earlier through colonialism, and recently accelerated that with the WTO. Globalisation has always been about accessing resources. This has been a factor mobilisation story on unprecedented proportions, but appears to have reached its conclusion as resource constraint has meant the “cash flow” to grease the wheels has started to become more expensive and constrained. Profit without productivity can only carry on for a finite period; we are now clearly consuming down our balance sheet or putting it through the P&L account. So we are left with a massive amount of debt, a massive amount of capital and labour that is unprofitable in the world we face, and a balance sheet of insufficient resources to keep the illusion alive. The only thing that will get us out of this in the long run is innovation which will expand the balance sheet, expand the pie and create the jobs that people want. How do we get rid of the debt? Are we in a debt trap whereby any interest rate hike will kill the recovery? Clearly it is going to be incredibly difficult, but low real rates are the cause of the problem, not the solution. I don’t personally see a zero rate trap, but we need to allocate capital far more productively than we are doing. The cost of money itself is hugely important. How negative were real rates? When people talk of borrowing from the future, surely the same logic applies to the cost of capital. If we have had low or negative rates that supported excessive consumption, we now need to have high real rates to direct capital back to innovation and gradually repair the balance sheet. The real cost of capital has to go up. No matter how much fighting the Fed and Treasury do, the real cost of capital will rise. The bond markets have to be allowed to clear some of the debt and thereby remove some of this misallocation of capital. Does that mean we are trapped in a position whereby the Fed cannot raise rates? Quite frankly it doesn’t really matter what the Fed does; real rates have to go up, are going up and will go up. The more the Fed and the government misallocate capital, the more the real cost of capital will have to rise higher to compensate. The only thing that will get real rates down is either a massive new discovery of incredibly cheap fossil fuels or the innovation that delivers cheap fusion. Otherwise it is a case of the cost of capital rising and causing demand destruction. Getting the central banks monetary policy inline with the real cost of capital in the market must be the first step to rectifying the misallocation of capital. One obvious thing would be for economists to stop ignoring CPI of food and energy as irrelevant as it is the fastest growing part of the economy. By ignoring it, they are turning what should be a smooth and relatively painless transfer of capital into an occasional out-of control collapse and transfer. Getting both a proper monetary and fiscal policy framework in place, based off genuine data rather than smoke and mirrors and fiddles must be the first priority. Whilst politicians and investors acknowledge that excessive leverage created the asset and debt bubble, they do everything they can to prevent a rational deleveraging or efficient allocation of capital. For the moment the best measure of the cost of capital is gold. For years gold fell as fiat money was printed and this unsustainable ponzi scheme established, however as that ponzi scheme now unravels, gold must go up. The scale of both the ponzi scheme collapse and gold appreciation will be huge. The problem is total credit market debt is still increasing. As Fitch recently highlighted, Chinese on & off balance sheet debt has expanded by nearly 40% GDP in each of the last 3 years. In other words, the misallocation of capital is continuing making the ultimate problem that much worse. China is now getting almost no growth per unit of additional debt. With each additional unit of debt, we are digging ourselves a deeper hole to get ourselves out of. Surely it is better to at least slow the digging? If we can allocate capital productively at the margin – (we know where we need to start making real returns) – then once we can start making a positive return on that marginal debt, then it becomes easier to support the residual debt we have. Private sector annuity rates will be tumbling and yet the unproductive public sector are still being given great pensions. We are taxing the productive private economy to give to the unproductive economy. This has to end. The idea of a European fiscal union fills me with dread as that would be locking this unproductive transfer into stone. Rather than keep kicking the can down the road, lets own up to our excesses and start putting the economy back on track. Don’t reward the rioters in London with yet another handout; force them to pay for the damage they have caused and the police time they have consumed. Why have we misallocated capital for so long? We can blame it on democracy, but bigger than democracy is the culture that forces politicians to favour the immediate status quo over the longer term good of the country. That culture then presumably comes down to poor understanding which comes back to low levels of education. We need to address these route courses. The real cost of capital has to rise. That will happen through default in one way or another. Debt has to be cleared. Multiple contraction is inevitable. Financial sector innovation has to be squeezed by engineering and scientific innovation. Until the debt is cleared and capital starts to be properly allocated, economic growth per unit of additional debt will continue to sour. Energy is the cash flow in this story. Until we get some real breakthrough technology, requiring large amounts of capital to both innovate and then roll out, we have no chance of supporting the economy"

8/9/2011 7:40:18 PM

Quote :

"I could be wrong by a year or two, its impossible to pinpoint that this far in advance, but it's on the way for sure."

You said you "nailed the timing". You "nailed the timing" about as well as blockbuster nailed the timing on cashing in on the video rental by mail service.

Quote :

"I said sell a few weeks ago"

You said sell a few weeks ago, you said sell a few months ago, you even said sell a few years ago, what you have never said is "buy".

8/9/2011 9:58:10 PM

Well obviously that's not true I have posts in 2009 saying buy foreign stocks, Apple, potash, and gold.


Of course I've been saying sell recently. That's because stocks were 40% overvalued

8/10/2011 10:21:23 AM

I seriously wish I had a job right now, cause I'd be glad to be putting in new contributions to my 401k at lows like this again

8/10/2011 4:00:20 PM

You're assuming that we're at or near the bottom.

8/10/2011 4:06:33 PM

Looked at my portfolio today.

I'm up $3500 today alone

Yeah baby! Energy is where it's at! The whole market is creamin' but that sector is holding strong!

Also picked up some stock on Monday at the Fire Sale price of $11.00 and it's up today to $14.11 that was a pleasant surprise

[Edited on August 10, 2011 at 4:26 PM. Reason : .]

8/10/2011 4:24:14 PM

^^ this is true, but even then, it's fell so far, that even then, when it recovers,

8/10/2011 4:47:26 PM

^^ lol, I assume you must be looking at a 401k and you just lost everything today that you gained yesterday id imagine.


^ actually the forecasted returns for the next several years are pretty dismal.

[Edited on August 10, 2011 at 4:53 PM. Reason : a]

8/10/2011 4:52:37 PM

^ No, I do not have a 401K. This is not a retirement account. This is my personal savings.

I have only gone up over the past couple weeks. No loss since the downgrade of the market.

[Edited on August 10, 2011 at 5:02 PM. Reason : ]

8/10/2011 5:01:11 PM

http://www.megrobertson.com/post/8708219865/dylan-ratigan-mad-as-hell-his-epic-network-moment

WOO!

8/10/2011 7:26:32 PM

WOO!

Cross Posting!

8/10/2011 7:34:04 PM

WHERE IS YOUR GOD NOW KRIS?????

IT IS HAPPENING AS IT WAS WRITTEN IN ACCORDANCE TO THE SCRIPTURES OF MY POSTS.

30 year treasury nearly failed today because everyone is pulling out even during a market crash. UH OH!!!!!



Smart investors would be selling the 10 year too bc that baby is in play as well for default

8/11/2011 2:17:00 PM

Wtf are you talking about? What world do you live in?

8/11/2011 2:36:00 PM

yall must be fucking rich as much as you know about the stock market

can you teach me

8/11/2011 4:03:16 PM

The walrus was Paul and yes I can teach you. Read some of my post history to get acquainted with the future and then feel free to ask questions

8/11/2011 11:20:11 PM

Can you explain again how treasuries are in trouble?

8/11/2011 11:35:05 PM

because he says they are, duh!

8/11/2011 11:56:20 PM

ITP: face tries to say that bonds are in trouble when they remain at historically low levels.

I'll be bumping this page as face attempts to claim some kind of economic wizardry.

[Edited on August 12, 2011 at 4:57 PM. Reason : as stocks go up bonds go down; this tends to be true]

8/12/2011 4:56:45 PM

lulz its easy to be a pessimist

8/12/2011 5:15:25 PM

Sure, I will be glad to explain how treasuries are in trouble. I'll even go slowly to help you follow.

The way treasuries work are slightly different than when a person or a corporation takes out debt. Typically a person takes out debt on an amortization schedule, so they are paying interest and principal down over time, eventually resulting in the full value being paid off. Corporations on the other hand typically pay a coupon rate along the way (interest payments) and at the end of the 5,10,30 (whatever is agreed upon) year time period they pay the principal off in full.

The US treasury differs slightly in that they will never be able to pay at maturity because they simply don't have the money to do so. Therefore they roll the bonds over when they mature by paying off original investors with the money they collect from selling the new bonds.

While this sounds remarkably similar to a Ponzi scheme, it technically is not because they are telling investors exactly what they are doing therefore it's not fraudulent.


Now, the debt has ballooned so high (and it's growing exponentially) that we can barely afford to pay the INTEREST on the debt let alone the principal. Luckily, the Federal Reserve has agreed to help subsidize the interest payments on the debt by agreeing to never again raise the discount rate above 0.25%. This has bought us a few extra years because the government is being subsidized with the money they effectively steal from senior citizens and savers every month.

Now, the US has been running the largest trade deficit in the history of the world for over a decade so other nations (China and Japan in particular) have made the mistake of accepting our debt in exchange for their products under the idea that eventually they'd be paid back handsomely.

They have begun to figure out the hoax and are starting to walk away from auctions of the treasury, as evidenced by the auction results this week.

Now, the US does not operate in a vacuum. Europe is collapsing due to their banking insolvency and their currency will likely cease to exist in a year or two. That has created a lot of demand for treasuries as a short term safe haven and gold as a long term safe haven. As Europe fails and restructures people will begin to shift their attention to the credit worthiness of the United States.

Since they know there is no way the 30 year will ever be paid back in earnest they will immediately dump the 30 year and enter shorter durations or different investment vehicles altogether. This will begin to play out in the 10 year bond soon after, and eventually the 2yr, 1 yr, etc.

As yields begin to blow out there will be a lot of political posturing about what is causing the problems and who is to blame (the ratings agencies, the short sellers, the businessmen, the gods, the republicans, the democrats, Peta, etc) but ultimately it will be a simple math problem.

Debt overload.

8/12/2011 5:40:16 PM

Ill be surprised if Kris has anything intelligent to respond to that with.

8/12/2011 5:47:22 PM

Quote :

"The US treasury differs slightly in that they will never be able to pay at maturity because they simply don't have the money to do so."

I would say they differ slightly in that they will ALWAYS be able to pay at maturity simply because one thing the treasury can always get is US Dollars.

Quote :

"They have begun to figure out the hoax and are starting to walk away from auctions of the treasury, as evidenced by the auction results this week."

This would be a convincing argument, if it were true in any way. The fact is that people walked away from treasuries as the market went up, and none of this would have been noticed had the market not went down so much.
All I really need to post is this: http://finance.yahoo.com/echarts?s=%5ETYX+Interactive#chart1:symbol=^tyx;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined, and people can clearly see that yields are no higher than they have been in recent times. In fact the return to US Bonds AGAIN after market instability shows that the faith investors have in US Treasuries despite the best efforts of Republicans in undermining the financial credibility of the US Treasury.

Quote :

"As yields begin to blow out"

Sure if that happens, you posted as if it were happening, which it is not.

[Edited on August 12, 2011 at 6:01 PM. Reason : ]

8/12/2011 5:58:51 PM

Kris glad to see you are agreeing with me that we will debase the currency if we simply print more money to service the debt.

And since we are in agreement on that, we can agree yields will blow out just as they do for every country who threatens default/inflation.

8/12/2011 6:39:14 PM

Nice strawman, but I was just pointing out how wrong you were.
BTW any explanation why yields have been tracking the market? I thought it was "HAPPENING AS IT WAS WRITTEN IN ACCORDANCE TO THE SCRIPTURES OF MY POSTS"?

[Edited on August 13, 2011 at 12:28 PM. Reason : ]

8/13/2011 12:26:50 PM

When buyers leave the market yields go up.

It is not a good sign when auctions begin to fail.

The beatings will continue until morale improves.

8/13/2011 12:44:11 PM

Buyers leave to put their money in other places as they become more stable, as the economy has gotten healthier people have left bonds, as it as gotten shakier they have come back to bonds. Rates are extremely low right now, they shouldn't be this low and it's not a bad sign if they do rise back to stable levels as the stock market begins to grow.

8/13/2011 1:20:04 PM

You live in a fantasy world man. The economy has been getting consistently weaker for over a decade now.

Be serious.

8/13/2011 3:22:29 PM

What's so much worse about it? The economy fluctuates, how do you know this is the apocalypse and not just a normal fluctuation?

8/13/2011 4:10:14 PM

Because of the debt levels.

We are past the point of return.

8/13/2011 5:00:19 PM

But we've had higher debt to gdp ratios in the past, how are we now past the point of no return?

8/13/2011 5:46:50 PM

We've also defaulted in the past.

We will default this time too via inflation.



[Edited on August 14, 2011 at 11:02 AM. Reason : a]

8/14/2011 11:01:07 AM

Oh no, apocalypse! right?

8/14/2011 12:04:13 PM

Yes. Glad to see you are starting to understand

8/15/2011 7:45:11 AM

You still need to explain how this is different from the other scenarios that turned out fine

8/15/2011 12:21:25 PM

Gee, I dunno. World economy. $14 trillion. Unskilled labor that demands cell phones, food, and healthcare.


Yeah its just like 1971 or 1936 right Kris?


I personally hope you get laid off so you can feel the pain that you casually dismiss since its not you right now.

8/15/2011 11:33:42 PM

face

Quote :

"So I won on the way up and the way down. And you've got twenty months worth of posts that demonstrate you have no fucking clue. "

Kris

Quote :

"You said sell a few weeks ago, you said sell a few months ago, you even said sell a few years ago, what you have never said is "buy"."

This seems pretty clear cut to me. I advocate buying when the Fed prints, and selling before they stop. You don't have to be a genius to figure out this market, it's really quite obvious.

rallydurham

Quote :

" okay, now you have to go ultra long. Earnings will be $95 which means S&P 1350-1400. Only go with large cap GROWTH plays and avoid google. Once we get there get out because there is no true domestic growth, its just a select few companies growing their share in a growing market place."

- Apr 10, 2010

Posted Date
April 9, 2010 value:
S&P 500 - 1194
GOOG - $566.22



S&P high water mark reached on 4/29/11 value:

S&P 500 - 1363 [+14%] (gee what a coincidence that i said sell when it reaches 1350-1400)
GOOG - $544.10 [-4%]



Current 8/20/11 value:
S&P 500 - 1123 [-17.5% from high water mark, -5.9% since initial post
GOOG - $490 [-13.6% since initial post]




And for the record large cap growth outperformed the S&P slightly, and outperformed Google by about 20% in the uptrend.


So let's recap. I told you buy aggressively before the market experienced big gains. I told you where the exit point was. I told you why the market would top out and why you should sell. I identified the sector that would outperform the S&P. I identified a high beta stock Google that would actually lose value while the S&P and its sector experienced big gains.

And then before the crash I was on here sounding the alarms to get the fuck out of the market because the crash was imminent.

I breathe this stuff these days buddy. Just embrace the golden goose of information like so many others have come to do.


[Edited on August 20, 2011 at 1:45 PM. Reason : $]

8/20/2011 1:32:24 PM

I'm not sure why you misdated your quote, I was too busy finding these gems:

Quote :

"Here is our generation's chance to get rich. Fucking bear down, don't make any purchases, and get in this market now. - 1/8/2008"

Quote :

"Now is the time to start thinking about buying heavily. -9/5/2008"

Quote :

"Personally I dont think real estate and home building has quite bottomed out yet... I think the price is right to get into those positions now but i think the public is going to panic and cut their losses for another 6-12 months... I dont think its a bad idea at all to get into real estate now -7/8/2007"

I apologize for always saying you say "sell". I didn't quite realize how bad your advice really was, you were really only saying sell when we were at the bottom, you had been saying "buy" extremely consistently when we were at the top.

[Edited on August 21, 2011 at 10:17 AM. Reason : ]

8/21/2011 10:15:24 AM

Nice try dude.

I've mentioned many times over that when I first joined the workforce I was an idiot.

I had an Econ degree and a job at a mutual fund company so I had the worst of both worlds.

Economics departments all over the country brainwash their pupils with their batshit theories so I was a pompous no-nothing just like the Krugman clowns of the world.

On top of that I'm at a sellside firm that has a vested interest in promoting all the "buy and hold" and other market fallacies and idioms so they can profit at their client's expense.


In late 2008 after witnessing all the financial media, economists, etc totally miss the boat on the collapse I realized something was up. It's one thing to be wrong on an earnings forecast, not anticipate how a product launch will go, etc but there was simply no way anyone who knew what they were doing could have not forseen that crash.

That's when I begin searching for truth. I started off by looking for the people who correctly forecasted the collapse. I diligently read their blogs, books, etc. I learned how they analyzed data and formed market forecasts. I re-taught myself true economics and learned basic accounting & finance. Malcolm Gladwell says you need 10,000 hours to master a skill, and while I'm not quite there I am getting damn close.

You see it all started with accepting the fact that I was wrong and then not settling for the bullshit lies and excuses that every media outlet and economists used to explain away the crisis.

I don't know how the people who deny this upcoming collapse live with themselves for perpetually lying to people. I don't know how people such as yourself can live with yourself for passing yourself off as an expert and spreading dangerous information to people who may otherwise protect themselves and their families.

Just listen. Take the time, it will be worth it tenfold.

8/21/2011 11:49:38 PM

Quote :

"You see it all started with accepting the fact that I was wrong and then not settling for the bullshit lies and excuses that every media outlet and economists used to explain away the crisis."

So how is your economics different from everyone else's economics?

8/21/2011 11:56:50 PM

Austrian economics varies greatly from keynesian economics.

The main difference is that keynesian economics values spending and consumption while Austrian economics assigns value to production and savings.

8/22/2011 9:05:03 AM

I would say it's even more nuanced than that. Keynesian economics takes a top-down approach. When "market failures" take place, the government can step in to cover reduced aggregate demand. When the boom is taking place, the government is supposed to take the punch bowl away and begin tightening. Unfortunately, very few political regimes have ever demonstrated the ability to do the latter.

Austrian economics emphasizes the business cycle - the role of the banks in creating booms and busts. Artificially low interest rates cause people to take out loans and consume, when they wouldn't have done so with market-determined interest rates. The result is a misallocation of resources - too many houses, inflated stocks, whatever. Eventually, these bubbles pop and people lose money. Austrian economics, then, is not about ending recessions, it's about preventing the boom.



[Edited on August 22, 2011 at 11:31 AM. Reason : ]

8/22/2011 11:28:38 AM

Quote :

"I've mentioned many times over that when I first joined the workforce I was an idiot. I had an Econ degree and a job at a mutual fund company so I had the worst of both worlds."

It just seems strange that you were unable to predict the most recent economic downturn yet you seem to be willing to so confidently predict the next one.

To be honest, you strike me more as perturbed gambler who after betting it wouldn't come, seems so willing to shove all his chips onto the other side of the board.

Quote :

"In late 2008 after witnessing all the financial media, economists, etc totally miss the boat on the collapse I realized something was up. It's one thing to be wrong on an earnings forecast, not anticipate how a product launch will go, etc but there was simply no way anyone who knew what they were doing could have not forseen that crash."

Very, very few people made money on the crash, your boy Schiff sure didn't. It's not a good investment strategy to bet big on the crash or against it. The only investment advice you will hear me give is "diversify".

Quote :

"That's when I begin searching for truth. I started off by looking for the people who correctly forecasted the collapse. I diligently read their blogs, books, etc. I learned how they analyzed data and formed market forecasts. I re-taught myself true economics and learned basic accounting & finance. Malcolm Gladwell says you need 10,000 hours to master a skill, and while I'm not quite there I am getting damn close."

You sound like someone who went searching for religion and found a cult.

Quote :

"You see it all started with accepting the fact that I was wrong and then not settling for the bullshit lies and excuses that every media outlet and economists used to explain away the crisis."

You should have never tried to be "right", that's what will bite you. Don't try to predict things we all know we can't Just diversify.

8/22/2011 8:30:30 PM

Quote :

"It just seems strange that you were unable to predict the most recent economic downturn yet you seem to be willing to so confidently predict the next one."

Well, let me clear this up for you. I was not able to predict the economic downturn in 2007 because I was using flawed assumptions and listening to people who didn't know what they were talking about.

I was able to predict THIS downturn correctly because I am using correct assumptions and I am listening to people that know what they are talking about. In fact, by studying them so diligently I am slowly becoming someone who can say that I know what I am talking about.

Quote :

"Very, very few people made money on the crash, your boy Schiff sure didn't."

That's funny, because his advice has actually made a shitload of money over the past decade. He advocates foreign equities and precious metals and he said to avoid real estate and US equities. Tough to be more accurate than that.

Quote :

"You sound like someone who went searching for religion and found a cult."

The only cult in the land of economics are the Keynesians. They might as well adopt Creationism too since they choose dogmatic theories over science and reason.

Quote :

"You should have never tried to be "right", that's what will bite you. Don't try to predict things we all know we can't Just diversify."

Spoken like a true financial stooge. Di-worsi-fication will not save you in a liquidity crunch just as it spared no one in 2008. Modern portfolio theory is bunk.

Tell me where one should diversify:

-Should they buy the stocks that are about to crash?

-What about the bonds that are about to crash?

-Should they buy the money markets that will break the buck?

-Should they buy the Credit Default Swaps that won't payoff when the government prints money to prevent defaults?

-Should they short the market that will go up when they unleash the printing presses?

-Should they buy real estate that will crash as unemployment skyrockets?

-Should they hold cash which will be devalued as they print to keep the shell game alive?



Tell me oh great one. How should they diversify this risk away?


Here's your answer. They should buy gold and hard assets and neccessities. Food, water, guns, gold, booze. That's fucking diversification that won't leave you broke like all the other idiots.

8/23/2011 9:02:30 PM

I actually wanna buy a Porsche. Should I liquidate my savings and buy a Porsche?

8/23/2011 9:09:33 PM