muses of the moment

January 28, 2013

The Housing Market

Filed under: Housing Market — totallygroovygirlfriday @ 1:26 am

Zerohedge outlines the real “boom” in the US Housing Market. Click here.

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January 27, 2013

London Calling

Filed under: Odds 'n ends — totallygroovygirlfriday @ 7:40 am

January 26, 2013

Grumblings from both ends

Filed under: Odds 'n ends — totallygroovygirlfriday @ 12:35 pm

gg has noticed an increase in the grumblings from the left and the right. The left, most recently, with the Swartz suicide (see gg’s Martin Luther King Day post) and Manning still in jail. And the right, represented here with one of gg’s favorite farming sites. The gun issue, of course, igniting the most recent debate. And paying higher taxes brings out the grumblings of everyone in between.

These grumblings have one thing in common: unhappiness with government getting into people’s business, regardless of whether that “business” falls on the liberal or conservative side of the line.

One day there is going to be an issue that unites these two ends of the spectrum. gg really thought the taxpayer bailout of a corrupt banking and financial system would do it, but not-so-much.

Saturday funny

Filed under: Global Debt, The Banking Crisis, The Financial Crisis — totallygroovygirlfriday @ 3:22 am

Click here for a Saturday funny.

Italian bank used derivatives to try and stay afloat during the global banking crisis that was triggered by the derivative market. Oh, the irony! Since the global derivative market is still not contracted, but expanded, the bank is still in trouble. Shocker!

If that was not enough chicanery, there is a twist in that none other than Mario Draghi, as Director of the Bank of Italy, would have had to vet Mussari (and his banks’ regulated books) during this period – as BMPS accumulated what is obviously undocumented derivatives positions to intentionally obscure losses. Once again, years later, it seems the truth comes out – and of course we would expect no-one to go to jailand the lying in Europe (then and now) continues unabated – as the reality of financial system health remains hidden from view.

Nothing is fixed. groovygirl hopes you are prepared.

January 25, 2013

The Great Transfer of Risk

Following up with yesterday’s post…..

Many real economists have been talking about how the global financial crisis has not been fixed, but the risk of implosion has just been transferred to the taxpayers and/or bond holder. This transfer doesn’t keep the system from imploding, it just changes who might be affected more than another.

Of Two Minds lays out the details of this transfer and the frightening problems that will surely bubble up in the future. Click here.

The problem with transferring risk to future generations is that it is a self-fulling prophecy. The lack of financial security and stability of the future generation will guarantee the further collapse of the system. The only thing it might buy you is time. But we are also facing the added “whammy” in first world countries of an aging population requiring money out of the system, not putting money into the system. We would be facing the further collapse of economic growth even if the younger generations were not saddled with future debt and higher taxes.

The only remaining questions are:

  • Is it a slow burn?
  • Timing? Or length of time?

The contraction in debt and the following lack of growth is guaranteed.

January 24, 2013

Cool list

Filed under: Odds 'n ends — totallygroovygirlfriday @ 8:16 pm

groovygirl thought this was a cool idea and a rather good list of books. Click here.

The Fed Released its Meeting Notes from 2007

Filed under: Economic Crisis, Global Debt, The Federal Reserve, US Government Debt — totallygroovygirlfriday @ 5:28 am

Five years later, the Fed has released its meeting notes from 2007 just prior to the credit collapse. Very interesting. Here is the New Yorker’s take.

So, groovygirl’s questions are: have they learned their lesson? Can they see the next collapse? Do they have anything left in their of tricks to help in the next crisis? But most importantly, will they understand the next trigger? Could they have another blind spot that will keep them from seeing the next leg of the global debt breakdown?

January 23, 2013

Longwave Group

Filed under: DOW and S&P500, Economic Crisis, Gold and Silver Investing, Precious metals, The Financial Crisis — totallygroovygirlfriday @ 1:38 am

The Longwave Group has made some of their charts and presentations available for free again. Although, the LWG falls on the deflationary side (and gg is not convinced one way or the other), their charts and conclusions are valuable.

Click here for their charts page.

Some comments on their charts.

Click here for the Inverse Pyramid. Confused on what is liquid money or risky money and what is not? This chart clears it up for you. Your investments should span over varying degrees of liquidity depending on your age, risk tolerance, and other financial needs.

Click here for the Kondratieff Long Wave Cycle. Most valuable chart you will ever see. Whether we have a hyperinflationary or a deflationary winter cycle, the outcome and best investment options are the same. Groovygirl can not emphasize this point enough. It should put to bed any discussion of hyperinflation or deflation. The long term plan to get through either scenario is the same. The only question is should you hold more cash currency or more physical coin currency to protect the value of the bulk of your savings? And if you can’t decide, do 50/50. The amount of money you have in these “best” investments through the winter cycle depends on¬† your age, risk tolerance, and other financial needs and the Inverse Pyramid chart.

Click here for the Dow-gold ratio with the “seasons” overlapped.

Click here for the gold-silver ratio. You can use this to move silver holdings into gold and gold into silver to maximize value over the course of the long-term bull metals cycle.

January 22, 2013

Next phase

Filed under: Gold and Silver Investing, Hyperinflation, Precious metals — totallygroovygirlfriday @ 8:28 pm

Jim Sinclair makes a good case for hyperinflation or currency induced cost push inflation. Click here.

Gold still looks good

Filed under: Gold and Silver Investing, Precious metals — totallygroovygirlfriday @ 12:32 pm

Long term, gold and gold stocks still look good. As they should during the Winter Season of the K-wave. Despite intervention from the Central Banks and silence from the press.

Click here.

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