The fed

Lots of blame to go around for 2008. My final paper for my MBA was an assessment of mortgage securitization that it cannot diversify away Alpha risk, though the market and ratings agencies were acting like they could. The Fed was also responsible for this asset bubble, as was Barney Frank and his calling on the carpet banks not wishing to lend to people who could not possibly repay a mortgage. This was just the start, but even the start had plenty of people on both sides of the aisle responsible.

Are there people who try to cut corners on Wall Street? Of course. Are there also politicians currying favor and forcing bad loans that made the situation worst? Yep. Point out about anyone in power at the time and I bet you I could show you how they also participated. I actually sold my house in 2007 since I knew it would be bad, (well my ex wife helped, but I was going to sell anyway).

I simply disagree it was ONLY investment bankers responsible for 2008. I lost a ton of money also, but I was lucky I was younger. I worked with others who weren't, and I did feel bad for them getting blindsided like that. The only market then that didn't take a beating was farmland, and I took that as a further lesson in diversification. Never have too many eggs in any basket, even your house. I may not hit the jackpot on the next hot area, but I likely will have a little exposure to it, and I simply sleep better at night knowing any one or two asset classes tanking tomorrow will not stop me from being able to raise my sons. It might hurt, but I will still be able to buy food.

I know this doesn't help SQG, and I wasn't really intending it to help. I am writing it more as a warning to others, and maybe they can sidestep the next pothole those in power throw at us.

 

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I've posted my position time and again, you've read it time and again. I have no reason to defend anything for you. I'm sitting back right now, ready to watch the show. At this moment I own all of my metal for less than current market value through trades and other maneuvering, and I've told you this time and again. You choose not to believe that, but it is a fact. I don't lie, I know that you don't believe that and I really don't care what you believe. You believe that the only way to get ahead is with stocks and I believe that is feeding criminals. I have proven to myself that I can make metals work, and it does work if you're willing to put in the effort of learning a market and making it work. It's too bad that your belief is the only thing to do with metal is buy it, put it in a box and hope. That's a very narrow way to look at it. With anything, if you put in effort and learn the craft, you open up a lot of possibilities. I haven't won every time, but I've won enough to get way ahead, and that's the name of the game regardless of where you play.

 

Unprecedented since 1929! It sure could tumble again, as Wall St. has fought or watered down every effort (regulation) to make it honest. When the billionaires on Wall St. figure it's time to take it again, they will, as it's all set up so they can. If a system is setup so it can be abused, it will be.

 

That's one way to look at it. Even so, I don't think a financial institution can legally hide all its bad paper in a package and sell it as investment grade.

This blaming the government and/or the private sector is kind of a fool's argument, not that you're a fool, as it is what we're fed by the media. It's foolish because the private sector is the government.

Ask yourself, why did so many mortgages go bad? Have anything to do with allowing 10's of millions of good paying jobs that were paying those mortgages to leave the shore through unfair trade agreements? Oh right, that's just the private sector maximizing its profit and a government controlled by the private sector allowing them to do it. Of course the government (controlled by the private sector) claimed they couldn't stop them from leaving. BS, if they want to sell in our market, we could require they operate here and employ here, as any country that cares about its citizen does.

Just my theory, To you it is a theory, but it falls into the area of political rants with no or few substantiated facts, so all need to stop the direction this is headed. Go to partisanlines.com if you wish to continue this line. Thanks

Oh gosh, that was the best part, there were lots of facts there, not facts that many want to accept, but the proof is out there. But okay, I'll take it to partisanlines.com

 

Just two posts back, Medoraman posted, in part, "...Just because Mike and I have slightly different views on PM at the moment, as well as you and I Longnine, does not make any of us wrong. None of us will know who was right until after its done..."

When I noticed you gave the post a like I thought for a moment you were giving up on your crusade to lead Stackers into the light.

It was of course a very short moment.

 

You know, when I gave Chris the like I though to myself it could be a bit confusing. So I will clarify. Chris made the statement "None of us will know who was right until after its done....." I do agree, but that does not mean I think it is a 50/50 split on the best way to play it. I have always known there are risks and have accepted them. I choose my method because I believe I am following the "Most likey" plan for financial gain, but there is certainly no guarantee. It is like this. We make a bet for even up odds. We have a pair of dice. You have been throwing the dice and for whatever reason, you "STRONGLY" feel the next throw will be snake eyes. So you pick snake eyes and give me all the rest of the numbers, and remember, it is even up. I could lose and you would be right. In my opinon you are still making a very bad play even though we don't know, and will not know until the dice are thrown.

Also for your second point, I have stated before, I am not trying to lead the stackers to see they light. It is other folks that I am offering up an alternate opinon. I do remember a post a while back when a newbie stacker lost a lot of money, he whined a bit about it and his position was "Well EVERYONE was saying Silver was going to Moon. That is the guy I am targeting, and it is not to convince him, since everyone has to be their own man, but just to show there are other opinions out there. I really thought it was very wrong especially years ago when this forum, was little more than cheerleaders, laughing, and talking about silver to 100, to 1000, and anyone who even dared to say different was crusified.

Mike

 

You have no argument with me about the abuses. Wherever you have a lot of money, there will be greed, thievery, scams, etc. etc. Known fact. Please don't confuse my "realistic" view with acceptance. While admitted , I don't do all that much to stop it, I do write my congressman on a regular basis. I know it is not much, but I really don't know what else I can do.

The abuses will not stop me from playing in the Equities market. In my opinion, it is still the best way to grow wealth, snakes and all. As I said before, I keep my tolerance level at a 60 % downturn, I have been shellacked before and most likley will be again, but one thing has always been consistant, the market has always bounced backed , 100% of the time , no exceptions. While there is no guarantee, I do like those odds.

BTW, with todays big hit, Small Caps are officially in correction terrritory. Maybe the correction has started, we will see.

 

I hear what you're saying. As I recall from business school, one could take any 15 year period, even including 1929, and stocks would have out performed anything else. So, if you're young, stocks are a no brainer and it's how my portfolio allowed me to retire at an early age. I think another lesson learned should be heeded as well, if you're within 5 years of retirement and you'll need the money, you should not be in stocks. My stock portfolio was my fun money, but it wasn't much fun after the thieves stole it.

 

I agree that nearing retirement all asset classes you are in should be reevaluated. I would not feel comfortable being very heavy in any class at all, not even cash or bonds. I am heavy equity and land now, but plan to hit 60 in 14 years being more balanced, with max exposure being maybe 40% equities.

I truly.am sorry what happened to you SQG in 2008 btw. I do feel bad for all of the retirees who took that massive hit, just like I feel bad for those who bought all of their silver in the 40's.

 

The system has become an easy one to exploit. It's based on finding fear and danger, coming up with a solution and implementing a tax/fee/law to fix it.

We need to stop making laws and increasing taxes. We need to hold those accountable for what they do and get rid of the violent scurge. They don't solve problems, they only add financial equity to the government's holdings.

The best we can do is to fight these and encourage everyone - young and old - to become better educated and self-sufficient.

Everyone needs to realize that the government is the worst entity for solving problems and the most expensive. Once we get critical mass on this understanding, we will begin to work back towards the nation we once were.

 

I agree with everything you said, but I am just having difficulty implementing

 

If elected, I will put a plan in place to solve all your problems - for a low low price and with no guarantees of results - and no way to measure progress.

If you do not get the expected results, it will be the fault of my opponent - and I will not be held accountable.

Thank you for your vote.