tag:blogger.com,1999:blog-6616959642391988608.post6530753327373324659..comments2024-03-28T00:18:25.641-07:00Comments on Calafia Beach Pundit: Monetary Base updateScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6616959642391988608.post-68220549883848657662009-02-16T15:11:00.000-08:002009-02-16T15:11:00.000-08:00I'm not a banking expert, but I suspect that banks...I'm not a banking expert, but I suspect that banks are fairly precarious. With the salary caps now in place, the banks are going to lose good people and the government could be left holding the bag (even more than currently). But meanwhile I hear lots of talk about new broker dealers starting up, and I imagine that a lot of small banks will grow by leaps and bounds as the big guys wither. Lots ofScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-84735541542128000962009-02-16T13:02:00.000-08:002009-02-16T13:02:00.000-08:00Scott:Question.....do you believe the major banks ...Scott:<BR/><BR/>Question.....do you believe the major banks in this country are truly insolvent? The more I read and understand the CDO's that they bought/sold, etc. and have on their books...the more I believe they are insolvent and should be taken over and sold back to private investors (similar to what was done with the S&L crisis). Your thoughts/opinions would be appreciated. It Jeffhttps://www.blogger.com/profile/00939788327871137653noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10138988979730137272009-02-15T15:07:00.000-08:002009-02-15T15:07:00.000-08:00Note that the explosive growth in the monetary bas...Note that the explosive growth in the monetary base has come to an end.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-84949131008633664202009-02-15T14:32:00.000-08:002009-02-15T14:32:00.000-08:00Gold is most likely in the process of forming a bu...Gold is most likely in the process of forming a bubble, but it's not necessarily on the verge of popping. With the Fed pouring tons of money into the system, and with interest rates extremely low, gold is hard for many people to resist. I woundn't recommend buying it, but I do think there is a good reason to own an inflation hedge such as TIPS.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-44153321835709732792009-02-15T14:01:00.000-08:002009-02-15T14:01:00.000-08:00Gold is this years oil, the bubble of 2009. Since ...Gold is this years oil, the bubble of 2009. Since the markets been obsessing with deflation of late, I think crisis hedge is a better explanation for the recent run up in prices. But like all manias, it will overshoot massively, if it hasnt already. When Joe Public is piling in, then its time to get out....See Jan sales of American Eagle gold coins?The Lab-Rathttps://www.blogger.com/profile/07536760477782772549noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14628520513284510582009-02-15T13:44:00.000-08:002009-02-15T13:44:00.000-08:00I'm not sure exactly on the source or cause of the...I'm not sure exactly on the source or cause of the reversal, but my guess is that the private sector's demand for the securities the Fed had purchased has improved. If so, that would be a good sign, as is the case with the Baltic and strengthening commodity prices for example.<BR/><BR/>Gold is always tricky, since it can respond to monetary policy excesses and to crises. And how to sort those twoScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-55871677970743678582009-02-15T13:28:00.000-08:002009-02-15T13:28:00.000-08:00Is gold an inflation hedge or a crisis hedge?Is gold an inflation hedge or a crisis hedge?broderohttps://www.blogger.com/profile/12296214283216386700noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-33766303043790122642009-02-15T12:52:00.000-08:002009-02-15T12:52:00.000-08:00Thanks for the chart, Scott. I've been posting th...Thanks for the chart, Scott. I've been posting this on the refrigerator door in our office since last October. But what explains the reversal? Paul Volcker making his influence known? Has the administration perhaps decided that the economy is bound to be slow no matter what, but there's no point is letting the currency collapse on top of all that? Or did they finally notice all those people Anonymousnoreply@blogger.com