Archive for November, 2010

  • The Fiat money system is inherently unstable, its merit depends on maintaining the conviction of the masses that the intrinsically ‘worthless’ paper money has some value; when they lose total faith, it results in the nightmare scenario - a run on the banks and the entire thing collapses, leading to the ultimate bust.

    The Irish Crisis and the Fiat Money

    The Fiat money system is inherently unstable, its merit depends on maintaining the conviction of the masses that the intrinsically ‘worthless’ paper money has some value; when they lose total faith, it results in the nightmare scenario - a run on the banks and the entire thing collapses, leading to the ultimate bust.

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  • No one will match your personal involvement in your own well being.  You must be an active participant, if for no other reason than you cannot rely upon others.  This is true regardless of their position or supposed expertise.  In all circumstances where you must retain others to further your interests, it’s vital you take an active roll in the decision-making.   Without your aggressive participation, your fortunes are in the hands of fate.  Do not passively defer to others.

    How to Survive in a Hostile World

    No one will match your personal involvement in your own well being. You must be an active participant, if for no other reason than you cannot rely upon others. This is true regardless of their position or supposed expertise. In all circumstances where you must retain others to further your interests, it’s vital you take an active roll in the decision-making. Without your aggressive participation, your fortunes are in the hands of fate. Do not passively defer to others.

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  • A stock holding represents ownership in a company. As a stockholder, you are entitled to a share of the company’s profits. Some companies pay out these profits in dividends, while others reinvest the money in their firm to increase profits in the future. Either way, stock prices tend to increase as companies improve their profitability.

    Introduction to Stocks – Video

    A stock holding represents ownership in a company. As a stockholder, you are entitled to a share of the company’s profits. Some companies pay out these profits in dividends, while others reinvest the money in their firm to increase profits in the future. Either way, stock prices tend to increase as companies improve their profitability.

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  • Our perceived wealth is the manifestation of one of the greatest misallocation of created assets and as such its existence will have profound ramifications. Our society, world society, has inflated expectations based upon financial leverage and useless credit. Our asset inflation and bubbles have created unsound distortions driven by unsound incentives.

    On The Verge Of The Greatest Inflationary Binge In History

    Our perceived wealth is the manifestation of one of the greatest misallocation of created assets and as such its existence will have profound ramifications. Our society, world society, has inflated expectations based upon financial leverage and useless credit. Our asset inflation and bubbles have created unsound distortions driven by unsound incentives.

    Continue Reading...

  • Brokers even lose money in their own accounts. They have not been taught how to protect their assets. Money market accounts do not make money for brokerage companies so the customer is told the old saw “the market always comes back” – except when it doesn’t.

    One Question To Ask Your Broker

    Brokers even lose money in their own accounts. They have not been taught how to protect their assets. Money market accounts do not make money for brokerage companies so the customer is told the old saw “the market always comes back” – except when it doesn’t.

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  • Unlike success in scientific endeavors, which requires profound skills to solve often complex problems, the continued application demanded in wealth accumulation is one that often requires little but a repetition of procedures, with no continual input of brainpower needed. Quite likely a mind capable of absorbing and processing new and stimulating information finds the demands involved in money-making a monotonous exercise offering little satisfaction except for the obvious benefits of having wealth.

    Intellectuals Beware

    Unlike success in scientific endeavors, which requires profound skills to solve often complex problems, the continued application demanded in wealth accumulation is one that often requires little but a repetition of procedures, with no continual input of brainpower needed. Quite likely a mind capable of absorbing and processing new and stimulating information finds the demands involved in money-making a monotonous exercise offering little satisfaction except for the obvious benefits of having wealth.

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  • Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Nassim, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know.

    Was The Last Bear Market A ‘Black Swan’ Event?

    Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Nassim, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know.

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  • What can a fund manager do when the entire market heads south? He is not allowed to sell out of positions and go to cash. That would be a violation and he could be prosecuted for it. He is required to watch money go down the drain. Your money.

    Why The SEC Won’t Help

    What can a fund manager do when the entire market heads south? He is not allowed to sell out of positions and go to cash. That would be a violation and he could be prosecuted for it. He is required to watch money go down the drain. Your money.

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  • History has shown that the secret of the stock market is not buying; it is selling. Without a proper exit strategy there is no chance to ever become a winner over the long term.

    Risk Vs. Reward

    History has shown that the secret of the stock market is not buying; it is selling. Without a proper exit strategy there is no chance to ever become a winner over the long term.

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  • This is why the actions of big banks and the decisions of our mostly corporate establishment run government seem so insane in the face of common sense. We try to rationalize their behavior as “idiocy”, but the reality is that their goals are highly deliberate and so far outside what we have been taught to expect that some of us lack a point of reference. If you cannot see the endgame, you will not understand the steps taken to reach it until it is too late.

    The Purpose Behind Engineered Economic Collapse

    This is why the actions of big banks and the decisions of our mostly corporate establishment run government seem so insane in the face of common sense. We try to rationalize their behavior as “idiocy”, but the reality is that their goals are highly deliberate and so far outside what we have been taught to expect that some of us lack a point of reference. If you cannot see the endgame, you will not understand the steps taken to reach it until it is too late.

    Continue Reading...