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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: 8bits who wrote (11310)	8/27/2008 6:23:02 AM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 50101

re["Something to note also is that M2 has turned back up"] I don't think so... More importantly... Bank Credit -- "The Shadow Banking System" which is the lifeline to hedge fund liquidity, leverage and commodity speculation... has collapsed. As to being betrayed by the permabull punditry... Yes, Jon Nadler has not been a permabull and he has been repeatedly attacked. To his credit he has also popped many incorrect spin-jobs and rumors. One out of 1,000 doesn't quite make your point, and certainly underscores mine. As to Claude's comments on using the price of gold from it's 1980 peak... you could start it from the $514 top of post bubble 1982. Certainly $514 was not a bubble. $514 gold was not exceeded for twenty+ years as inflation via ramping M3 continued unabated. The far more important chart was this 20 year M3 chart. Money Supply and thus - inflation ran unabated for two decades. During those two decades the gold price fell. More importantly than that example of gold failing to do well in a twenty year non-stop INFLATIONARY environment is the "lost decade" of Japan's DEFLATION, in which gold also failed to launch, and was outperformed by both the domestic currency - Yen, and the US Dollar. As far as "insurance" -- I've never said: don't own gold, or dump it all... You're missing the main point: You would not hold DOW 11,300 down to 6604 and defend it, let alone call it -- "insurance". So why would anyone hold gold stocks ie: - the HUI index down from 518 to 300... and "defend it - as insurance? Does insurance give you a -40% haircut in days and weeks? Is that how "insurance" is supposed to work during times of monetary, credit, and market crisis? Sounds more like a toxic subprime debt bomb than insurance to me? Your version of insurance is much different than mine. Puts, shorts, and common sense "trading" ie: re-balancing and hedging is much, much better insurance than "buy and fold." Mo later, S.O.T.B. PS: ...if it makes you feel any better, I am buying a basket of junior/explorer golds here with "house money" from my Nat Gas "insurance/hedge" short trade. Many at .25 cents on the dollar from mere months ago. That's how you buy and fund your insurance policy... upon the backs of the whipsawed, and now liquidated permabull masses. That's not vindictive, that's how youmust trade to survive and prosper in volatile markets. Quit bitching about banks manipulating COMEX people! How many times have I pounded the table on studying the "scouting reports" on your competition? ...to THINK like a Central Banker - not a pom pom waving permabull cheerleader. ...to ANTICIPATE these manipulations vs.continually REACTING to them. Can you imagine Bill Billichek bitching and moaning because the opponent sent both safety's on a blitz and sacked his QB after 7 consecutive pass completions? After 7 consective pass completions (read gold rally)... YOU'D better be expecting the BLITZ!(read PPT/ESF, Central Bank, or COMEX manipulations)! WAKE UP PEOPLE -- this isn't that damn difficult. It's 90% mindset. Their are two sides to the game -- offense AND defense, and 90%+ of you ONLY play one side of the game...and wonder why you keep getting whipsawed? No high is ever high enough to sell into - because gold is either going to $2,000 or $5,000. And these $200, and 200 point corrections are to hold (fold) into, because you're holding "insurance"?!?!?!?! I've finally come to realize that DNA is DNA. Darwin rules. 10% will survive and prosper, and 90% will always continue to be what they are... food in the jungle of life.