Friday, September 12, 2008

Peter Schiff on the Fannie/Freddie Bailouts

Posted by TraderMark at 1:09 PM TweetThis
Part I (6 minutes)



Part II (6 minutes)



I wonder if this is spelled out simple enough for the average American to tear himself away from "lipstick on pigs" drama. Ah, nevermind - it's 12 minutes long. Far too much of an investment of time to understand what the government is doing to us.

What is sad is Schiff's gold/foreign markets strategy must be causing he and clients to take a bath lately while those buying lovely financials and retail are laughing since July 15th.

Here is a simple 9 minute video shown on CBS about the financial state in general, unfortunately it's on a show I am probably the only viewer under the age of 55 years old :) It was back in the old days of July when Freddie/Fannie were "free bird" and IndyMac Bank had just fallen. Ah... the good old days. A good example though of a town in Ohio and why the bottom 2/3rds of Americans are beginning to really suffer as "service jobs" take over the country. (remember, it's a regional recession - you folks in farmland and mining/energy economies are in a different spot)


Posted by TraderMark at 1:09 PM Comments (8) | Edit This Post | Create A New Post

8 comments:

rosesryellow2 said...

Mark

Want to see a pretty chart?
Check out MCD.

I know you try to focus on more off the beaten track names but in a market like this it may help you to take whatever you can get. Some of the internationals that sell things for cheap and have charts like this may be of interest to you...


http://tinyurl.com/7ygy2

September 12, 2008 1:49 PM  
rosesryellow2 said...

Go to Stock charts and type in the weekly of MCD

September 12, 2008 1:52 PM  
dclancy said...

I think Schiff is missing a big point, if we don't consume the stuff others are making, then those countries making the stuff suffer too, no job = no wealth right?

The fact that the CEO's of Fannie and Freddie paid themselves millions of dollars and gets to keep it is appalling! Someone needs to do something about this dammit

September 12, 2008 2:17 PM  
TraderMark said...

roses see my post yesterday on closing 2 ultrashorts to simply life

I posted both the MCD and WMT charts there

pooring of America 101 charts

dclancy, what happens to the world if we consume within our means versus over our heads? Thats the main problem. To fund consumption we continue to take on debt. If we consumed at a level consumerate to our production there would be a 1x adjustment to the downside worldwide and then a balance.

September 12, 2008 2:20 PM  
soccerbill8 said...

Schiff is saying that anyone, a child, can consume....and real wealth is about production and savings.

we have neither so we should be poorer and we USED to be wealthy, but the trend is towards being poor.

And the rest of the world is suffering from us, because we borrow with dollars and pay back with more worthless dollars.


But none of you can argue against Schiff's track record

I ordered Schiff's most recent book...i cannot wait to read it.
BOOYAH

September 12, 2008 2:37 PM  
hrs0944 said...

As I tell my kids -

Rich people are rich because of their rich decisions,
Poor people are poor because of their poor decisions,
Poor people who make rich decisions will become rich
Rich people who make poor decisions will become poor

works for countries too

September 12, 2008 4:04 PM  
Stonefoxcapital said...

Gotta worry about somebody that is so negative on the US. US will remain the greatest country in the world. The savings rate in the US is greatly under reported and US corporations have record cash on their balance sheets. What reckless consumption are we talking about?

September 12, 2008 5:29 PM  
TraderMark said...

SFC,

the % of GDP that is assigned to capital (corp profits) versus labor is the highest since 1920s.

meaning highest % of national gains are in pockets of corporations versus working class since right before Great Depression.

So yes, the corporations are doing relatively well. But have you looked at a 10 year chart of the S&P 500? If a stock market is a reflection of a nation's well being what does 10 years of nothing mean?

September 12, 2008 5:39 PM  

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