If you don't Silver Stack you will be left behind

If there is or are no other alternatives that are poised to do well, doesn't that lead to the conclusion that the DOW is overbought? What happens when things get overbought, usually? What if they're ridiculously overbought?

You're missing the point that is staring at you. Loose money was created to try to ease a financial crisis, and it did in the short term. You could also argue that it actually led to a recovery. The only problem with that, as I see it, is the loose money was used to cover for toxic assets that were in the system. The money to make those toxic assets "disappear" was given to the same institutions that created the toxic assets, basically rewarding bad behavior. It isn't too much of a leap to believe that those same institutions that were rewarded for creating a bad situation didn't go and do the same thing over. Why wouldn't they, they were rewarded handsomely for setting up a crisis.

Here is my point. All of that loose money was given to those that created a bad situation. They weren't punished, they were rewarded. They now have all the liquidity they could ask for, they already know they won't be punished by creating a like situation, so why wouldn't they do it again? They did, trust me, and it will be paid for soon enough. Can you honestly tell me that the DOW from it's 14,000 back in 07, which I'm sure you'd agree was a bit inflated to it's 18,000 now is due to natural growth of the businesses that are included in the DOW, or is it just a place where a lot of that loose money is stashed? What about the other "assets" that some on here love to crow about? Are those just rising in value naturally, or is there something else causing them to rise?

Some of you can crow about recovery all you want, I'm just going to state that there will be another financial crisis that will make 2008 look like a picnic. At that point, I'm sure you'll state that common sense is still the worst kind of sense to have.

 

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As Kurt alluded to, with the statement of over selling, how do you know that 7000 wasn't artificially too low. It make little sense just to say it was 7000, now it is 18,000 so that that measn it is too expensive or artifically high. While the Dow and S&P have a lot of variation, sometimes too cheap, sometimes too expensive, at the end of the day though, the indexes will follow the earnings. Right now with the indexes are trading at about a 15 multiple give or take, that would suggest that historically, we are a tad bit high right now, but considering the improving economic conditions, the slightly higher multiple is justifed.

As far as pumping money into the economy, as Kurt put it so well, It worked.... I am not sure why they stackers feel that expanding the money supply is such a bad thing. It is something that is absolutley necessary. You must expand the money supply. As economies grow, the money needs to be increased, or you run into a situation with too few dollars chasing too many goods and BAM, you have deflation which puts the brakes on the growing economy. Deflation is just plain ugly. Even when we were on the Gold Standard, the money supply increased as more Gold was mined, this was necessary, but the big problem was sometimes the money supply (GOLD Mining) could not happen fast enough, which really put a drag on the whole economy. Just not a good way to do things......

 

Not just my opinion on the economy. Many foreign countries are not so willing to accept the US dollar. You used to be able to get into the Taj Mahal for about $5, now they won't except American money. You may not like the man but listen to RonPaulmessage8.com He studied Austrian economics and has studied economic for 40+ years. Mike says purchase assets to grow your wealth. What wealth if the money has no value. If you need a wagon full of money to buy basic groceries that's your wealth, good luck. You can barter with Silver and Gold.

 

This brings up another thing. Is the economy really growing? Are we producing more goods at the rate money is being created, or are the assets just climbing in value and over-valued because they're the "good alternative" or perceived as the good alternative?

 

What? The only thing remarkable about that is that they EVER took American currency at the Taj Mahal! India is a sovereign country with their own currency. You can, however, buy rupees with your dollars, trust me on that. There may still be parts of India where British currency is still a de facto currency, but it would surprise me.

I think Ron Paul is a crazy crank. I tried to make him a deal once - he stops pretending to be an economist, and I'd stop pretending to be a gynaecologist. I got no answer.

 

The economy is growing and were are producing more goods and services....Perhaps not as fast as some would like but true growth is there.

 

I figured you would have that sarcastic attitude. You know everything so this conversation should end. P.S. I met and spoke to Ron Paul and I know he is two things, a doctor and is brilliant.

 

Excellent question, and an appropriate one. I truly believe the economy, including the "underground" one because it uses currency too, is growing not just at a rate commensurate with M2 growth, but in excess of it. This can and probably will change more than several times over the next few years.

 

Brilliant politician appropriate for the district he represented? Yup, no argument from me.

 

That's a bit silly to bring up what amounts to be a tourist attraction as proof that foreign countries are not willing to accept USD's It has no relevance. The USD is still what everyone wants. As far as Ron Paul, I have no problem with the man, it is his message that sucks. I take it you are a young buck if you are on the RP band wagon. You won't get this right now, but hopefully after you had another 10 or 20 spins around the sun you will understand he does not understand economics.

It also seems you really missed the point about assets. Assets are not money. You exchange them for currency as needed and get the "going rate" just as you do PM's. There is always this talk about being able to barter with Au and Ag, but try bringing you precious Silver into your local Piggly Wiggly and see how far you get trying to barter for your Ho Ho's

The last comment about a wheelbarrow full of money, you are talking about UBER-inflation. Well you are predicting something that has NEVER happened to the USD or any Reserve Global currency. Making you investing decisions on a hunch that something that has never happened will come to pass, will most likey not pan out for you.

 

Soooo, what would you rather have seen done.. While what you said is true, about rewarding folks for bad behavior, to punsh them, would really be like cutting off your nose to spite your face. I don't think, most the USD citizens would have liked to see the ecomony really go down the tubes, just to make a point.

 

You know what, Mike? I actually do think there is one fairly radical thing we should do - reinstitute something close to the old Glass-Steagall firewalls. At least then "gamblers" can do down the tubes (as in the Eddie Murphy movie "Trading Places") without taking commercial and personal banking with them or needing the taxpayers to bail them out.

 

As some would like? How about the actual goods and services produced equaled the funds provided.

You're welcome to believe this will all come up unicorns and rainbows, but I'm not a virgin and am unwilling to wait for a full moon at midnight to see one.

 

I like owning silver and gold but the whole currency collapse scenario 'better get in now before it's too late' is really just a great marketing ploy. The guys peddling or promoting the silver and gold currency hype train are likely ecstatic to keep taking in the average Joe's federal reserve notes. The very same notes they decry as worthless or soon to be. Yet all the while taking that worthless paper to the bank and likely living a lavish lifestyle off the guy who is spending every red cent on canned goods and junk silver waiting for the day when he will be king.

 

Might work

 

Exactly, no one really saw the irony that Ted Butler only accepted Greenbacks and not Silver for his newsletter or that Eric Sprott is so happy to sell you his silver for $20 when he believes it is going to $1000. Just a bunch of charleton's trying to separate folks from their FRN's

 

FRN's? F ... R ... Stinking N's? What about red seals, man?

 

Well, you're way ahead of us then. After all, caves don't have street addresses, now do they? "The man" might have a harder time finding you. When you're stocking with your stacking metals for the "big one", don't forget the lead, coated with copper, mounted in brass.

 

Ok, Why be so negative. Life is a risk sport man....go out and grab some of it. It is really all about the odds. Silver is just not the best play to increase your wealth. There are just better options if you want to be riding around in fancy cars, with big cigars, and pretty girls on your lap. I just don't get why you are planning on being king of the disaster, I mean it is still a disaster right??? Sooo why worry about it, it will suck for everyone, whether you stack silver or not and there is just no guarantee Silver will be worth anything anyways. Without industrial demand, who would want it.

 

Aw c'mon, Mike! Why you be so, "harshing his mellow"? The bullion bugs will want it. After the economy goes all "Amish skills only", they can still write their newsletters about how important PM's are with their moveable lead type and California Job Box printing operations run by steam created by burning livestock dung, while pretending "We were right! Told ya'!"