Killing Time

100
Thu, Mar 5, 2015 - 10:40am

One look at these updated charts and you'll see why there's really not much to discuss this morning.

I mean, seriously, what else is there to say this morning? When not even the ECBQ€ stuff can budge price out of these corners, you know just how carefully these pennants are being painted. Please click the gold chart in the left and look at how precise this is. Absolutely remarkable!

So, really, the only thing I'd like to discuss this morning is the clip below. Perhaps, before you watch it, you should go back and read Part Two of the essay series that Jim Quinn published last week: https://www.theburningplatform.com/2015/02/28/breaking-bad-debt-episode-...

Not only is a 7-year auto loan a bad idea, a 7-year auto loan where you roll the amount you're "underwater" into your new loan is a even worse idea. To then have these loans packaged together and sold off in tranches as AAA-rated collateralized debt obligations is a nightmare we've seen before and a truly horrific idea.

And now comes this...a discussion on CNBS as to whether someone should take out an extended car loan and use the extra debt assumed to dabble in the stock market, all because a "diversified portfolio should return in excess of 3-4% over time". And to think, I'm the one vilified and despised in some corners of the internet because I've had the audacity to suggest that folks continue to add physical metal while prices have declined these past three years...

Anyway, this is a sure sign of an impending stock market collapse. How can I say this? Because this is the exact same type of discussions that dominated the financial press in late 1999 and early 2000! Back then it was "take out a home equity loan" and/or "get a cash advance on your credit card" and buy tech stocks. Don't you realize that the NASDAQ was up 80% last year? This is easy and anyone with just a few extra minutes of time per day should be able to double their money really quick and then pay back all of the fresh debt. Just buy a good diversified portfolio with names like Lucent, Level 3, Worldcom, InfoSpace and JDS Uniphase.

Ugh...

As I go to close, I see that price has suddenly popped $5 and it is slightly outside of the pennant. While this is certainly not a bad thing, don't go getting all excited about a positive resolution just yet. There will be all sorts of false breakouts and breakdowns today and overnight as the pennant closes to zero. Nothing is permanent until 8:30 tomorrow.

TF

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  100 Comments

DeaconBenjamin
Mar 5, 2015 - 11:02am

Gold has worked for Indians, says Thomas Kaplan

NEW DELHI: Telling Indians not to buy gold is like asking Americans not to consume liquor, billionaire investor Thomas Kaplan has said.

Appreciating Indians' appetite for gold, Kaplan said the precious metal has historically been a very good way to store wealth for India and pointed out that China is "specifically and overtly" encouraging its people to buy gold.

India is one of the largest consumers of gold in the world and imports as much as 800-1000 tonnes of gold each year.

"I think trying to ban gold or to ban gold imports, you know, would have about as much success as trying to tell Americans not to drink alcohol. And prohibition did not work and eventually someone had to accept the reality," he told PTI on the sidelines of a CII event when asked whether India's efforts to curb gold imports would work.

Finance Minister Arun Jaitley in Budget 2015-16 had proposed three schemes, including redeemable gold bonds and monetisation scheme, to curb gold imports and monetise large stocks of the precious metal lying idle in the country.

"The price of gold have shown that those Indians who purchased these metals over the years can look back and they can say, you know what, it worked. So, that's what known as positive reinforcement.

"If you tell people, particularly really smart people like Indians that they can't do something that has given them gratification for a very, very long time. They will find another way to get what they want," Kaplan, widely known as gold evangelist, said.

Referring in China, another huge consumer of precious metals, Kaplan said: "I was is Beijing a couple of weeks ago. The Chinese government, specifically and overtly, is encouraging its people to buy gold. They want to buy gold. China is importing almost as much gold as the world's annual production and they like India are sucking it out of West."

https://www.caseyresearch.com/gsd/edition/gold-has-worked-for-indians-bi...

Mar 5, 2015 - 11:03am

Btw, as mentioned at the

Btw, as mentioned at the bottom of this post...DO NOT get excited by this early, little breakout. Already, the sell-the-rally algos are working it over and price is back down to $1205 from $1209. There will likely be breakdowns overnight, too, all the while price likely finishes at 8:30 tomorrow morning right near $1200.

DeaconBenjamin
Mar 5, 2015 - 11:03am
Marchas45
Mar 5, 2015 - 11:08am

Not Again?

LOL Sorry Silver66

I'm ready to buy again but I'm holding off to see what happens and it's driving me crazy as I'm going against what I usually do and that is: Keep Stacking no matter what. Lol

Mar 5, 2015 - 11:11am

One of the things that ZH

One of the things that ZH consistently claims is that most Chinese gold demand is due to collateral demands for Chinese debt financing. Koos absolutely destroys that idea here: https://www.bullionstar.com/blogs/koos-jansen/chinese-gold-financing-dea...

Hmmm. I wonder if ZH will publish it...

CPE
Mar 5, 2015 - 11:15am

Andy agrees with Blythesshrink

· 8m 8 minutes ago

Footprints in noted yesterday had hallmarks of official supply.Foreshadow a miss?Time for COT's to rinse a few naked short momo's

https://www.tfmetalsreport.com/comment/285116#comment-285116

silver66
Mar 5, 2015 - 11:22am

Marchas45 I need to reevaluate

my game plan, this damn working for a living is getting to be a problem...LOL

Silver66

Stack till it hurts...baby

DeaconBenjamin
Mar 5, 2015 - 11:25am

The forgotten fact concerning the Civil War

The forgotten fact that you should begin with concerning the Civil War is this: the future of North from 1860 to 1865 was dependent on the Illinois Central Railroad. Lincoln was a lawyer with that railroad. Stephen A. Douglas was a lawyer with that railroad. In senior management was George McClellan, who oversaw both of them. So, in the election of 1860, the Presidency was going to be won by an Illinois Central lawyer. In the election of 1864, the election was going to be won by an employee of the Illinois Central Railroad. Anybody who thinks this was random is the kind of person who believes that it was random in 2004, when a member of Yale’s Skull and Bones was going to be elected President. This is an organization that selects 15 people a year. Out of all the people in the United States, the only candidates who made it to the top were Skull and Bones members in 2004, neither of whom was allowed, or is allowed, by the secret oath of the organization to discuss the organization. Similarly, historians of the Civil War rarely bother to talk about the centrality of the Illinois Central Railroad.

https://teapartyeconomist.com/2015/03/05/how-to-teach-the-civil-war/

CPE
Mar 5, 2015 - 11:28am

@DeaconBenjamin

And all this time I thought the civil war was about Trayvon Martin. Excellent update.

Mar 5, 2015 - 11:29am

I think this is a really

I think this is a really interesting story and I've been following it now for a couple of weeks.

https://www.telegraph.co.uk/news/worldnews/europe/france/11449981/Drone-...

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