Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: T L Comiskey who wrote (19823)	6/3/2003 11:09:06 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

CNBC interview on bonds (sick with minor flu, but can think) Hornbarger of AG Edwards he is bearish on TBonds, and lists reasons why they are very consistent with my views, thus he is a sharp guy - Fed reflation efforts are expanding money supply, which is eventually price inflationary (and by definition extremely inflationary) - USGovt tax cut is stimulative to some degree, and will enable spending and price supports - USGovt federal deficits are huge and growing, which must be funded either by monetization at the Fed or by foreign funds - commodity prices are in an uptrend, signaling higher costs across the entire economic spectrum - the USDollar is weakening badly, signaling higher import prices and commodity prices - gold is rising, a general systemic signal of distress in the paper-based securities and imminent price inflation - US Economy GDP growth could see 2ndHalf growth - Fed interest rates are below the CPI inflation rate, offering negative real interest rates to savers - the Treasury yield curve is steep, which refutes any claim that DEFLATION is a threat (just the opposite, with INFLATION the clear and present threat) Hornbarger expects current TENyr TNote yield to rise from the current 3.4% to 4.8% in the next 12-18 months if this occurs, serious damage to the bond market will take place a breakdown in the bond market will catapult gold into the 2nd and 3rd stages a good interview, which I took notes from he was belittled by the obnoxious haughty arrogant painintheass Mark Haines, who is a smug asshole Haines said that bond bears have been wrong for a year apparently Haines blames bond bears when the Fed is desperately pushing down interest rates in a very destructive fashion lower bond yields and higher principal prices are a signal of utter desperation by our Fed, which so far has seen massive damage to our currency the Fed has now decided to fight the effects of monetary inflation with more monetary inflation they see the deflation threat as treatable with more money, when the effects of their policies have created huge overcapacity and indebted consumer demand GreenScheiss must believe that more overcapacity and more indebted consumer demand will fix his oversupply of money to the economy for 15 years GreenShitHead will go down in history with a photo next to Herbert Hoover for his destructive policies and career / jim

To: T L Comiskey who wrote (19823)	6/3/2003 10:36:56 PM
From: stockman_scott	Respond to of 89467

where are SKILLING and LAY? _______________________________________ Third top Enron executive arrested A former top trader at failed energy giant Enron has been arrested over charges that he helped manipulate California's energy market, which three years ago saw the state suffer rolling black-outs. At the time John Forney was the head of Enron's "real-time" power-trading operations in the west of the USA. Mr Forney is accused of being the architect of illegal trading schemes that drove up electricity prices by circumventing price caps and caused energy shortages across California. "Our investigation of illegal activities during the energy crisis is active and continuing and remains one of this office's and the Justice Department's top priorities", said Kevin Ryan, US Attorney for the Northern Distric of California. Enron collapsed in autumn 2001 after the company was forced to admit that it vastly overstated the value of its assets and profits and hid billions of dollars of debt. California crisis Mr Forney's arrest, however, is not linked to the practices which led to the downfall of Enron. But it strengthens the case of those who argue that California's energy crisis of the years 1999 to 2001 was not caused by flawed regulation of the state's electricity market, but by outright market manipulation. "While California consumers were suffering through blackouts... Enron was manipulating western energy markets for profit through illegal, fraudulent means," Mr Ryan said. Mr Forney is alleged to have invented a scheme known as "ping pong", which saw cheap energy exported out of California and then re-imported at a much higher price, thus circumventing federal price caps on California energy. Another scheme, dubbed "Death Star" by Enron traders, exploited weaknesses in California's energy management system. Experts estimate that the energy crisis cost the state of California about $42bn. Mr Forney is the third Enron trader arrested in connection with the Californian energy crisis. In October 2002 and February this year, former Enron executives Timothy Belden and Jeffrey Richter pleaded guilty to conspiracy to commit wire fraud in connection with Enron's trading schemes. Mr Forney himself is now working for American Electric Power in Columbus, Ohio. In a statement, the company said the arrest was related solely to Mr Forney's activities at Enron. The Enron collapse Enron's downfall came after rumours had shattered market confidence for many weeks. In October 2001 the company finally owned up to its corporate failings and admitted that both its profits and its asset values had been hugely inflated. In December Enron was declared bankrupt. During the following months investigators began to untangle a web of accounting tricks, phantom profits, tax evasion and dubious corporate practices. As Enron came tumbling down, so did its auditor Andersen, which fell apart around the world amid allegations of helping Enron devise dubious accounting schemes. So far, the investigation into Enron's accounting tricks has not yielded a single conviction. Former chief financial officer Andrew Fastow has been indicted on 78 charges of money laundering, fraud, conspiracy and obstruction of justice. But neither former chief executive Jeffrey Skilling nor Enron chairman Kenneth Lay, Mr Fastow's immediate superiors, have yet been charged. The company itself, meanwhile, is being "restructured" and says it hopes to emerge from bankruptcy as a "viable, albeit smaller company". Story from BBC NEWS: news.bbc.co.uk Published: 2003/06/03 19:26:18 GMT