Posted by: graemebird | October 7, 2008

Wall Street Welfare Queens Comprehensively Sabotaging Price Information.

They have turned the sacred house of capital allocation (and price information for sound decision-making) into a den of thieves. Here’s how.

More Later.

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Responses

  1. Mr Bird
    are you saying there are lots of these homos on wall street?

  2. http://www.reason.com/news/show/29067.html

  3. Mr Bird,

    I do hope to hear more on your ideas on these recent topics where you have been remarkably terse.

    I have some money to invest and I was interested in what you thought was sound in this day and age. I was thinking oil at one stage, but that seems to be a poor choice now. Gold seems the most obvious place, but I am very much at sea.

    I used to have money in mining as a proxy for owning these commodities but I am concerned that the stock prices are like all others and vastly inflated by ponzi money. Most importantly I need to get rid of my money and wish to know the best location to shuffle it away until the ponzi scheme has collapsed and we are back to square.

    Do you have any ideas Mr Bird?

  4. I think oil is a very good choice right now. I think its a good buy anything under 100USD. The Americans have record low gasoline reserves. The paper market appears to have cut loose from the real market. But the real market must make itself felt when the inventories run dry.

    Also one reason perhaps the oil price has temporarily dipped is that the part of GDR not shown in GDP is most volatile in relation to ponzi-money.

    So we see that GDP is C+I+G+X-M where I is net investment.

    But GDR is C+ Gross Investment + G + X – M

    It turns out that Gross investment is the biggest part of the equation. This is all business to business spending. It is a vast and unstable figure and so that resources prices can tank if the ponzi-money starts dying for awhile.

    I don’t know how one goes about buying oil. But I would suppose that anything under $100 particularly is a good buy if you can hold it for a time. Because in all this fancy pants chasing after financial instruments a lot of the real investment doesn’t seem to be happening and the oil supply isn’t going to be growing a great deal any time soon.

    I think small companies outside the US who have a lot of oil on the go would be worth looking into. Like if Rio had a lot of oil that would be a big plus factor. Really any non-US companies that are big in Energy should be on your short-list. Like we have a young company called Linc that works out of Chinchilla that can liquify coal. Now I don’t think its hit a profit yet. But you could probably buy it for a song right now. And there will come a time when it will be able to produce a barrel of diesel equivalent for maybe 90 when to get it from traditional sources will cost maybe 200+. So there will be many years where interest is high and its margins are very high. And I would suspect you could pick it up for loose change right now.

    Some small gold and silver mining companies around the place have suffered from long-term naked short-selling. They haven’t been able to bankrupt the jackal-pack by buying their own shares back because they were in the expansion phase. Like there might likely be a couple of Canadian outfits in this category that are very much undervalued. When the naked shorts are collared and the US feds shenanigans against gold run dry some of these outfits stand to multiply their value ten times. Some of these outfits can pull an ounce out of the ground for 150USD and their price isn’t reflecting it. The central bank may no longer be able to prevent the gold runup and the naked shorters will one day have to run and hide… So some of these probably are a good thing to shortlist.


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