Thursday, January 10, 2013

Some things to read again

Guardian - now even the IIF admits austerity was wrong. And by Josh Brown's theory of rich white people, that means the political support for austerity is disappearing. Because, of course, rich white people are finding that they lose wealth as a result.

Beyond Brics - will Putin finally get serious on reform? No. No he won't. Don't do business with Russians.

FT Alphaville - nice article on the issue-attention cycle. With links. Try incorporating some sociology into your trading! It's a great field. For example, it's about 5 times more scientific than economics.

Bonddad - grains dropping. That is bullish for EM growth, I guess, since food costs won't escalate so fast. Actually they still will since the market cost has nothing to do with the retail cost... but at least it'll look bullish, right?

Beyond Brics - Vietnam sucks. For Gary.

JC Parets - Richard Russell on gold going to da moon Alice. I'm not completely anti-goldbug; I just feel that if you're going to quote "important people" to support your stupid goldbug argument, you should quote the ones worth listening to, instead of johnny-come-lately fruitcakes and shysters like Eric Bloody Sprott.

Here's Rick Russell's take on gold:

The price of gold in terms of “dollars” has now risen thirteen years in succession.  But what is even more remarkable is the fact that most Americans have totally ignored (even despised) this remarkable bull market.  Let a stock rise seven or eight years in a row, and it will be the talk of Wall Street and the talk of every social gathering in the nation.
Yet this amazing bull market in gold stands alone, sneered at and almost hated.  I’ve been in this business for over 60 years, and I’ve never seen anything quite like it. 

However, I do think I know something about human nature.  What I’ve learned about human nature is that it doesn’t change.  For instance, if a stock creeps up year after year, sooner or later the crowd will discover it — and then they’ll pounce on it, ultimately sending that undiscovered stock far above its reasonable price.

My belief is that somewhere ahead, the crowd will latch on to gold.  Then, as disinterested in gold as they are now, the crowd will pile into gold with the same frenzy that overtook the storied “49ers” when they packed their bags, kissed their wives and kids good bye, and headed West in search of gold.

To da moon Alice!

1 comment:

  1. Gold isn't a stock. What crowd there is already latched onto it, imho. I'll just borrow your theme - goldbuggers better hope the red chinese menace and the dot-on-the-forehead crowd keep buying, lol.