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07.03.09- Achilles' Heel
The much anticipated economic recovery is now fully discounted by the financial markets. Most strategists and economists seem to agree that the US economy is stabilising and will start to revive towards the end of the year. Interestingly, the ‘great depression' hyperbole doing the rounds last autumn has now been replaced by the ‘green shoots' hype. It seems as though everyone is spotting some kind of ‘green shoots' somewhere in the economy. If one didn't know any better, after reading the latest headlines in the media, one could easily get the impression that perhaps the geniuses in the financial community have now become experts in horticulture! Read More
07.02.09- The State Budget Crisis Peaked on June 30th
Midnight, June 30th marked the end of fiscal 2009 for 46 states in the US, and various state constitutions require 45 of 'em to have a final budget by July 1st. Thus, 10 states are facing a true blue crisis - California, Connecticut, Pennsylvania, North Carolina, Delaware, Illinois, Ohio, Indiana, Mississippi and Arizona did not have budgets in hand on the eve of the new fiscal year. Read More
07.01.09- Goldman Sachs The Fourth Branch of the U.S. Government
Quietly and almost unnoticed by most Americans, the US Federal Government introduced a fourth branch to its political structure in 2006. As you know we already had three branches, they are:
This pretty much has us covered in terms of political strategy... but what about financial issues? Everyone knows Congress has no clue how to allocate capital. And the Executive Branch doesn't exactly have a great track record when it comes to financial matters either (we've run a deficit virtually every year since 1970). Shouldn't we have a Financial Branch of government? A group of fiscal experts entirely devoted to keeping the US's fiscal house in order? Well, we actually do, but instead of installing a branch of smart, genuine financiers interested in benefiting the American people, we installed a bunch of greedy crooks intent on stealing as much of the public's money as possible with no consequences what so ever. Read More
06.30.09- The Time Has Come But the question, dear reader, is... are you here? Gold is going to turn and punch through the $1000 barrier like it was not there. The U.S. dollar is going to drop like a stone. And yet, the vast majority of people are walking around in a daze. When I talk to ordinary Americans, they tell me that things are bad. This is their way of agreeing with the consensus media position of last fall which confuses falling prices with economic bad and buys the whole media line of that time. Read More
06.29.09- Die Hard Illusions
Fans are hopeful...but here at The Daily Reckoning we take a discouraging view of these revival efforts. We admire the achievements of science and technology; as for the works of economists and central bankers, well...we'll wait to see how things turn out. Yesterday, we took up the biggest illusion of the Bubble Era. We held it up to the light...and noticed: So deeply rooted is this illusion that it will take more than a strong wind to uproot it. Read More
06.27.09- Greed, Fear, and Sheeple -
Greed and fear are the strongest motivators for Sheeple-style investors driving both bull and bear markets and the so-called business cycle. You will find this idea within most mainstream schools of economic thought. Read More Copyright © 1996-2009
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Big Picture
June 30, 2009... another financial reckoning day.
Well people, we are here. I am here. Gold is here. 
This just in...Ben Bernanke and Tim Geithner have rushed to Los Angeles. If they can revive an entire world economy...why not the 'King of Pop?'
There have been volumes written about psychology of the marketplace and numerous articles, commentaries, newsletters, and books have addressed the twin emotions of greed and fear and how they contribute to a herd instinct or mentality amongst both lay and professional investors. I prefer to collectively call these people "The Sheeple." But it is simply human nature to get caught up in the emotion of the moment and react without thorough analysis and clear thinking. At various times in my long investing career, I have found myself part of this unsavory crowd.
