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|User Info||ADP: Sucks; entered at 2012-05-02 14:06:55|
Registered: 2009-02-28 DFW, Tx
I don't believe Ben understands accounting. Neither do most of the rest of the people. QE replaces interest bearing securities with non-interest bearing cash. The purpose of cash is to make transfers, thus its sole purpose is to provide financing for banks that can't finance themselves out of the market. I am seeing doomsayers like Porter Stansberry turn around and recommend buying bombs like Citi and BAC. His claim to fame seems to revolve around telling people to buy JDSU just before people ran it to the moon. It quickly fell back to earth and still lies there 12 years later. |
At this restaurant where I currently sit, there is a broker fleecing a woman and her old man out of their savings. I think there are ownable stocks out there, but it is highly unlikely these poor folks are going to end up in them. I suspect the stocks that are involved in the transmission of natural gas are quite possibly worth owning, but I am sure their debt structure would be worth looking at, including how much they had off balance sheet. Recall ENE was a gas transmission business that got into something they didn't understand.
This entire economy is living off accounting tricks. I was just reading Pater Tenebrarum's acting-man.com, a post last Friday. In it, he went into the accounting tricks banks are using to show profits. Seems they took gains on the reduction of the value of their own debt, then turned around and quit using the tactic, once the price of their debts recovered. Then they took profits lowering their reserves for losses. How do they get away with reporting this to the public? This entire article is worth reading and I am going to post it to my Facebook page. It goes into how the governments, including ours, are going to spy on us to make sure the banks and the government people get their pound of flesh from us.
Lastly, Smack, things have gone to hell. It is all being covered up with lapping debts and other illegal accounting tricks. The interest subsidy to bankers is in the range of $500 billion and the government is getting the same amount. It is coming out of our pockets.