[eastbay]

$this->bbcode_second_pass_quote('JohnDenver', 'J')im Rogers has lots of egg on his face. His mantra has always been that commodities are on an unstoppable bull run. He was profoundly wrong, and people who kept the faith in him lost (big).

[threadbear]

$this->bbcode_second_pass_quote('JohnDenver', 'J')im Rogers has lots of egg on his face. His mantra has always been that commodities are on an unstoppable bull run. He was profoundly wrong, and people who kept the faith in him lost their asses.
At the moment, his "Rogers International Commodity Index" is down by about 40%. That's pretty much all you need to know about his credibility. If he's so good at seeing the future, why didn't he see that future?
He's just trying to change the subject away from his own failures. If the interviewer had any sense he/she would have kept pounding him about his failure to call the commodity crash.

[cube]

$this->bbcode_second_pass_quote('', '"')The way to solve this problem is to let people go bankrupt," Rogers said.

[Jack]

Good video. Thanks.

[Micki]

No point in arguing that prices are down.
What I am looking at is mainly gold mining companies and they are dropping on volumes that are 10-20% or less of their normal trading volumes.
Yesterday I watched a stock that normally as 1-2 million shares traded in a day drop 46% on 90,000 shares.
To me that looks like only the small guys are selling these particular shares.
That doesn't speak for the asset class in total but suggests big boys are expecting some shares to potentially rocket up again.
If they didn't excpect that, it would be better to sell off and then to buy in again when prices settle down at bottom.

Also looking at the stomping of Silver yesterday. It was down to $10.50 at close and then taken down further 50c in the thinly traded access market. It screams tape painting and attempt to set of stops and blackboxes on Monday. As usual there doesn't seem to be anywhere in Melbourne that I can buy Silver near spot. That makes me very very frustrated.

Anyway, now I started waffling about different things than I was supposed to. Was just browsing Reuters and came across Paulson indicating Treasury is very close to start buying equities in financial firms.

$this->bbcode_second_pass_quote('', '[')b]U.S. planning to buy equity in financial institutions

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson said on Friday the United States was developing plans to buy equity in financial institutions if necessary to halt market turmoil.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('DantesPeak', '
')The bad news is that the clock is now ticking on the coming dollar crash, which should now arrive before the end of 2010.

[ReverseEngineer]

$this->bbcode_second_pass_quote('DantesPeak', 'I')'ve said this many times before but some still don't believe it - in the middle of the 1930s depression the US government was able to devalue the dollar and raise commodity prices 75%. Stocks prices also rose sharply during the beginning of the devlauation period.

See this post for links to historical data: link

Now, with liquid-nitrogen super-computers spitting out $1 trillion in new dollars in just the last few weeks, Sinclair is already behind the times when he says a 'Weimar crisis is coming soon'. It's already here. The rate of commodity inflation will eventually exceed the successful dollar devaluation experiment of the 1930s, which created inflation in a very depressed economy, although inflation won't get into gear until money starts coming out of one month Treasury bills earning the extremely low interest rate of 0.01%.

Also there will be no bank 'holidays', at least not until the dollar crashes. The President will just decree full FDIC backing of all deposits and bank assets if necessary.

The bad news is that the clock is now ticking on the coming dollar crash, which should now arrive before the end of 2010.

[jbrovont]

This is true as long as the "thing of value" you're holding onto doesn't end it's life at zero value. If the company you're invested in ends up making it, you may win. If it dies, you lose everything. Gold is nice, so is sliver. Not on paper - in your hand.

We're seeing that government take-overs kill paper securities, so your holdings need to avoid those too. Lots of dangers, with menial rewards.

I agree - if think it's coming back, hold. IMHO, many companies are going to bleed out. Drop it while it's hot.

$this->bbcode_second_pass_quote('eastbay', '')$this->bbcode_second_pass_quote('JohnDenver', 'J')im Rogers has lots of egg on his face. His mantra has always been that commodities are on an unstoppable bull run. He was profoundly wrong, and people who kept the faith in him lost (big).

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Micki', '
')Wonder if we have to change our thinking that USA is going to Fascism to full blown Socialism instead. (Well there have been a number of posters here at PO who seem to think that is the preferred solution. Personally I cringe at the thought.).

[ReverseEngineer]

$this->bbcode_second_pass_quote('EnergyUnlimited', 'N')evertheless it was really a great fun to observe socialism collapse from the position of being evil speculator trading all sort of goods (and currencies) for a hefty profit while living in student hostel.
All that being surrounded by girls who are very impressed, how well you do.
And you don't have to worry about draconian government rules because demoralized law enforcement authorities are so utterly corrupt that their members are actually behaving subservant to you, just to get their cut.
After all your daily profit was often larger than their monthly pay.
That was good old time, I had a very good life these days and I remember all that events with much sympathy.

Long live collapse!

[EnergyUnlimited]

$this->bbcode_second_pass_quote('ReverseEngineer', '
')
Tantamount to accepting the deal with the Devil of course, and valuing worldy goods and sexual conquest as the ruler of your life. Very shortsighted and short lived gain IMHO.

Perhaps you will remember it as you burn in Everlasting Torment in the Fires of Hell Orgasm last a few seconds, Damnation lasts for all Eternity.

Reverse Engineer

[richardroma]

I thought that was an excellent upbeat post by EnergyUnlimited. There is great opportunity in troubled times. Anyway, the collapse of socialism is just an all around positive event regardless. Collapses are often positive events since it is the conditions that led to collapse that is at fault and the collapse itself is the readjustment.

Also, the argument about you haven't lost any money until you sell is missing the point. Leaving out the possibility of bankrupcy of the underlying asset, an investors main concern isn't money, it's value. And the value of your stock is what it is worth compared to everything else in the economy, not only money, and that fluctuates.

[Chuckmak]

JD is so full of crap when he brushes his teeth in the morning his toothbrush turns brown.

All asset classes are falling, JD. Institutions need to get liquid, and by doing that' they're selling any asset they have. Once this is over, prepare for massive inflation. But you don't get it, do you, JD?

[TheDude]

$this->bbcode_second_pass_quote('Chuckmak', 'J')D is so full of crap when he brushes his teeth in the morning his toothbrush turns brown.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('TheDude', '
')You dirty dog! I'm quite taken by the investment advice from Doomer Slavs, sounds a lot more practical than all this talk of selling coins when the price is $5k/troy ounce. Yeah, you could make your sale - and in all likelihood find you're being tailed by a car on the way home. Or they'll just break your kneecaps when you hop on your bicycle.

[pedalling_faster]

$this->bbcode_second_pass_quote('Micki', 'I') actually can't remember reading Jim Sinclair talking about Weimar like this before. Normally he has talked about inflating and dropping USD but then stabilizing the situation with a new quasi-gold standard when gold is at or above $1650.

[oswald622]

$this->bbcode_second_pass_quote('', 'I')magine a country such as Venezuela announced that it was bailing out an investment bank, then just days later said it was nationalizing its mortgage industry, and then just days later that it was bailing out its biggest insurance company, and then just days later its government pledged 700B$ to inject into its failing banks, and then just days later its stock market fell 20%. Would you feel comfortable having your money invested in such a country, in its stock market, in its bond market or in its currency?

I hope you answered “No” or “Hell, No!” to the above question! So why should you feel any different about the situation if the country is called “America”? I am going to show you that the US Bond market is on the brink of collapse and with it will come the collapse of the currency, just as you would expect to be the outcome of such ridiculously inflationary policies in any other country.

...

Many investors are starting to think that after this stock market rout and with a G7 package things will begin to improve. That is not the way things work! 20 years of excesses with even more monetary excesses about to be heaped upon us as a “rescue package” do not get unwound in 5 days. This is just the beginning.

[Micki]

$this->bbcode_second_pass_quote('pedalling_faster', '')$this->bbcode_second_pass_quote('Micki', 'I') actually can't remember reading Jim Sinclair talking about Weimar like this before. Normally he has talked about inflating and dropping USD but then stabilizing the situation with a new quasi-gold standard when gold is at or above $1650.

[DantesPeak]

If Rogers was worried last week, I wonder what he thinks about the unlimited expansion of the money base announced by the world's central banks today.

I'm not sure if a new gold standard would work, but Europe has a lot more gold and would appear to come out better in the coming currency crash. Yes indeed - crash. Don't worry, it's unlikely to occur in 2008, so there's time to prepare.

The unlimited amount of money being created now will end up going into something(s) (as yet unknown, maybe gold, oil) that will compete for money just going into currency deposits.

[Keith_McClary]

link

"Without giving specific names, most of the significant American banks, the larger banks, are bankrupt, totally bankrupt," said Rogers, who is now a private investor.

"What is outrageous economically and is outrageous morally is that normally in times like this, people who are competent and who saw it coming and who kept their powder dry go and take over the assets from the incompetent," he said. "What's happening this time is that<b> the government is taking the assets from the competent people and giving them to the incompetent people and saying, now you can compete with the competent people.</b> It is horrible economics."