Videos Archive

  • As we track the FED’s effort to control the economy we’ve focused on QE. There was actually a previous “Operation Twist” back in 1961, which was very similar to what we saw last year. The 1961 version, named after the popular dance of the time, extended the length of debt in an effort to take immediate pressure off the market...

    QE-101: Operation Twist

    As we track the FED’s effort to control the economy we’ve focused on QE. There was actually a previous “Operation Twist” back in 1961, which was very similar to what we saw last year. The 1961 version, named after the popular dance of the time, extended the length of debt in an effort to take immediate pressure off the market...

    Continue Reading...

  • We often discuss quantitative easing (QE) in regard to Federal Reserve (FED) decisions and how it affects our economy. And, while our overall focus is on the long-term, we’ve found it necessary to consider short-term applications as well, since prices tend to fluctuate violently with QE announcements. Something that’s become abundantly clear in recent days, however, is that there are...

    QE-101

    We often discuss quantitative easing (QE) in regard to Federal Reserve (FED) decisions and how it affects our economy. And, while our overall focus is on the long-term, we’ve found it necessary to consider short-term applications as well, since prices tend to fluctuate violently with QE announcements. Something that’s become abundantly clear in recent days, however, is that there are...

    Continue Reading...

  • In a word, nothing. Yesterday we discussed what would happen today, and it happened. Sure, things get messy as the announcement is made. People anticipate something and expect something so invest with the idea that something will happen. And, of course, as soon as the words leave his lips, something happens. Check out this chart on the S&P 500. It’s...

    So, what did Ben’s Announcement Accomplish?

    In a word, nothing. Yesterday we discussed what would happen today, and it happened. Sure, things get messy as the announcement is made. People anticipate something and expect something so invest with the idea that something will happen. And, of course, as soon as the words leave his lips, something happens. Check out this chart on the S&P 500. It’s...

    Continue Reading...

  • With this week’s action in metals, it’s no real surprise that many articles are coming out with claims that we’re on the cusp of the next major move up. In fact, we’ve been awaiting the next major upward move ever since metals began their drop back in February. As early as May we thought we saw signs of a rally....

    Is this the Beginning of New Highs in Precious Metals?

    With this week’s action in metals, it’s no real surprise that many articles are coming out with claims that we’re on the cusp of the next major move up. In fact, we’ve been awaiting the next major upward move ever since metals began their drop back in February. As early as May we thought we saw signs of a rally....

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  • Pierre Lassonde, who used to be Chairman of the World Gold Council, offered some interesting observations to Eric King recently. As it turns out, part of what’s held gold’s price up in recent months has been, of all things, central bank accumulation. Is that because they want more gold (especially in light of its elevated reserve status) or because a...

    Gold’s Status Changing with Central Banks?

    Pierre Lassonde, who used to be Chairman of the World Gold Council, offered some interesting observations to Eric King recently. As it turns out, part of what’s held gold’s price up in recent months has been, of all things, central bank accumulation. Is that because they want more gold (especially in light of its elevated reserve status) or because a...

    Continue Reading...

  • Last Thursday, even as we were discussing algobots and HFT, Dollar Tree stock experienced a flash-crash early in the trading day, dropping about 18% in the opening two seconds of trading. From there it went on to regain most of it throughout the day, closing down about 2%, from $50 to $49.11. For investors with anything less than a 20%...

    Dollar Tree Reveals More Quant Issues

    Last Thursday, even as we were discussing algobots and HFT, Dollar Tree stock experienced a flash-crash early in the trading day, dropping about 18% in the opening two seconds of trading. From there it went on to regain most of it throughout the day, closing down about 2%, from $50 to $49.11. For investors with anything less than a 20%...

    Continue Reading...

  • Following the financial crisis of 2008, regulators began to look much more closely at banks, contingency plans, reserves, etc., in an attempt to stave off another round of bailouts. Without going into the idiocy of the original bailouts, it may be that current controls will, at the very least, keep the public off the hook for banker indiscretions and irresponsibility....

    Regulators Require Banks to Provide Plans for Life or Death

    Following the financial crisis of 2008, regulators began to look much more closely at banks, contingency plans, reserves, etc., in an attempt to stave off another round of bailouts. Without going into the idiocy of the original bailouts, it may be that current controls will, at the very least, keep the public off the hook for banker indiscretions and irresponsibility....

    Continue Reading...

  • As noted yesterday, we’re continuing our discussion of manipulation.  And, while I will post a few more articles on HFTs below, today we’re focused on precious metals. There’s no doubt that the greatest ally in the effort to expose and halt precious metals manipulation is the Gold Anti-Trust Action Committee (GATA). For over a decade they’ve worked diligently to bring...

    Some Closing Thoughts (for now) on Banks Influencing Gold

    As noted yesterday, we’re continuing our discussion of manipulation.  And, while I will post a few more articles on HFTs below, today we’re focused on precious metals. There’s no doubt that the greatest ally in the effort to expose and halt precious metals manipulation is the Gold Anti-Trust Action Committee (GATA). For over a decade they’ve worked diligently to bring...

    Continue Reading...

  • In my study of market manipulation I ran across a pile of useful articles. With this in mind, I think today I’ll give brief commentary on several of them and post links for readers to follow if they so desire. The information is very useful for helping the investor to think through the challenges at hand. As they say, “To...

    Algobots, Quants & HFTs all Arrayed Against Private Investors

    In my study of market manipulation I ran across a pile of useful articles. With this in mind, I think today I’ll give brief commentary on several of them and post links for readers to follow if they so desire. The information is very useful for helping the investor to think through the challenges at hand. As they say, “To...

    Continue Reading...

  • Federal Reserve Chairman Ben S. Bernanke told lawmakers that progress in reducing unemployment is likely to be “frustratingly slow” and repeated that the central bank is ready to take further action to boost the recovery, while refraining from pledging any new policies. Bernanke, responding to questions during testimony today to the Senate Banking Committee in Washington, said easing tools include...

    Bernanke Predicts Slow Progress on Unemployment

    Federal Reserve Chairman Ben S. Bernanke told lawmakers that progress in reducing unemployment is likely to be “frustratingly slow” and repeated that the central bank is ready to take further action to boost the recovery, while refraining from pledging any new policies. Bernanke, responding to questions during testimony today to the Senate Banking Committee in Washington, said easing tools include...

    Continue Reading...

  • We often talk about Europe lately simply because there’s so much to talk about. It’s the clearest and loudest proclamation of fiscal idiocy; Keynesianism’s poster child. But we need to bring things home to the U.S. shores regularly too. While it’s certainly true that what’s happening in Europe has a dramatic effect on our economy, it’s also true that we...

    Math Will Eventually Expose Economic Lies

    We often talk about Europe lately simply because there’s so much to talk about. It’s the clearest and loudest proclamation of fiscal idiocy; Keynesianism’s poster child. But we need to bring things home to the U.S. shores regularly too. While it’s certainly true that what’s happening in Europe has a dramatic effect on our economy, it’s also true that we...

    Continue Reading...