Buying panic!

[MrHanky]

Buyers everywhere,pile on...the bottom is in forever!

 

[Scully]

Gold's 10 Worst Days

-7.30% 6/13/2006

-5.83% 3/19/2008

-5.51% 8/05/1993

-5.37% 5/24/2006

-5.15% 12/01/2008

-4.85% 10/02/2008

-4.83% 10/24/1997

-4.41% 2/04/2010

-4.27% 10/22/2008

-4.23% 8/11/2008

http://blogs.marketwatch.com/thetell/2011/08/24/golds-10-worst-days/

 

Your data source does not go back far enough. Based on the one-day change in the London pm fix, the single worst day for gold was Jan 22, 1980, when it lost 13.2%. And the best day was Jan 3, 1980, when it gained 13.3%. And since the London fix represents a half-day average of sorts, the volatility in New York was probably worse.

 

Ahh, those were the days.

[Lugnut]

The Ben will save all from pain (except pensioners, but who cares bout them?)

 

At some point the baby boom retiring will end the monetization.

[Bungster]

The Ben will save all from pain (except pensioners, but who cares bout them?)

 

At some point the baby boom retiring will end the monetization.

 

Viva la Grey Panthers!

 

[bizfix]

lee what conclusions are you coming to based on the number of people posting and following the site. You called the top perfectly based on those observations

[Lugnut]

Viva la Grey Panthers!

 

 

Half Nekkid.

 

Makin' own clothes.

 

Savin' money on haircuts.

 

- I think that is a picture of our future retirements.

[Speakeasy]

Understanding Derivatives

 

Heidi is the proprietor of a bar in Detroit . She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later.

 

Heidi keeps track of the drinks consumed on a ledger (thereby granting the customers’ loans). Word gets around about Heidi’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Heidi’s bar. Soon she has the largest sales volume for any bar in Detroit .

 

By providing her customers freedom from immediate payment demands, Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages.

Consequently, Heidi’s gross sales volume increases massively.

A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Heidi’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.

 

At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS. These securities then are bundled and traded on international securities markets.

 

Naive investors don’t really understand that the securities being sold to them as AAA secured bonds really are debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.

 

One day, even though the bond prices still are climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Heidi’s bar. He so informs Heidi.

 

Heidi then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since Heidi cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and Heidi’s 11 employees lose their jobs.

 

Overnight, DRINKBOND prices drop by 90%. The collapsed bond asset value destroys the bank’s liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.The suppliers of Heidi’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

 

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multibillion dollar no-strings attached cash infusion from their cronies in government.

 

The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Heidi’s bar.

 

Now do you understand?

 

Author unknown

[Jimi]

Was this knowledge already during IDS? I didn't see reference to it:

 

SAN FRANCISC0 (MarketWatch) -- The CME Group Inc., the parent company of the main metals and energy exchanges in the U.S., on Wednesday announced an increase in margin requirements to trade gold. The money needed to trade gold contracts increased 27%. Initial margin requirements rose to $9,450 from $7,425 per 100-ounce contract; maintenance margin requirement rose to $7,000 from $5,500, both effective as of the close of trading on Thursday. The CME had increased margins for gold two weeks ago.

http://www.marketwatch.com/story/cme-increases-gold-margin-requirements-by-27-2011-08-24?link=MW_latest_news

[NoBid@Even]

Author unknown

 

PriceLess, thank you!, Speakeasy!

[DrStool]

I never got the notification.

[Jorma]

It's COMEX op ex tomorrow. Jessie is always all over this and always says watch out for opex week.

[Lugnut]

I see ZH has his readers lathered up on Fed Repo. Few of them understand it other than they think it is certain to happen.

 

When you are too afraid to lend, having new incentives to lend where there is no spread (because the whole thing is wired to keep short rates low and force long rates low), it doesn't go anywhere.

 

You'd see a big boost to banking if they could start charging fees to retail depositors again (on "free" accounts) like they were 4 yrs ago. Ain't gonna happen.

[Lugnut]

Doc -

 

Nice how news is getting ignored right now, isn't it? I think the street sees Friday as Christmas. Deciding what to do with this year's bonus money.

[DrStool]

Durable Goods Devil In The Details And The Big Picture

This note came from David Stockman in response to that article which went out this afternoon as a Wall Street Examiner Email Bulletin.

 

Lee,

 

Good points, but the SA bias could be even worse because the auto sector has eliminated much of the traditional July shutdown. Note that durables less civilian aircraft were up on a SA basis only because auto orders (motor vehicles and parts) were up 12% SA, but down 20% NSA. By contrast, less seasonal stuff like electrical equipment and appliances, machinery and computers/electronics were all down even on the SA basis. Perhaps add “mangled and maligned” to manipulated and massaged! I much enjoy your work.

 

Best regards,

 

David Stockman

 

 

Thanks to David Stockman for his thoughts and kind words!

 

[DrStool]

Doc -

 

Nice how news is getting ignored right now, isn't it? I think the street sees Friday as Christmas. Deciding what to do with this year's bonus money.

 

Well, we were kind of in the sweet spot time wise for a crash response rally.