patrick.net

However, the financial system may experience Depression-like influences.

Although I do not like moral hazards, I still have to praise Bernanke for saving our banking system, if he is to succeed, that is.

I recognize the need to not let it collapse but that was just rampant stupidity. Criminally negligent.

How about fining the CEOs for all they're worth and dishing out some jail time?

Still though, FDIC is covering the deposits, so what's the big deal in letting it all go to pot?

One probable cause of the Great Depression was underconsumption.

Perhaps retiring boomers will be our savior this time around. There should be no fear of them under-consuming whatsoever. :)

Like CFC's tan man....he was criminally negligent. These people need to be held to a standard of public trust. They are backed by public funds.

As long as you give them payments they'll buy anything. Oh man, I saw the funniest King of the Hill the other day where the grandfather wanted to buy a timeshare in Mexico. It was classic!

How about fining the CEOs for all they’re worth and dishing out some jail time?

It will happen. A few scapegoats will go down in numerous witch-hunts.

just rampant stupidity

'Stupidity' is the alternate spelling for 'humanity.'

I think a War is much more likely than a Depression.

That's my worst case fear. Mexico is already firing across our border at the border patrol. We could have a real body count from pissed off investors going in and shooting some of these investment firms up. Nothing like finding out the servicer didn't complete the paperword properly so basically you bought someone else a house free and clear.

Malcolm,

If you look at my post again, you'll see that I didn't write that you were wrong, nor did I say that you were offensive. I merely said my substitution of street terms for your politically correct characterization of "most" of us is just another way of saying the same thing.

I wasn't disagreeing. And I didn't say you were being offensive, and I didn't take offense. So if you wanna say that I'm the offensive one, go ahead. "Some" or maybe as you said "most" mainstream Americans who grew up in mainstream USA and learned physics and math but failed in social skills took our social un-intelligence with us to engineering school and the workplace. Hardly surprising that some (or as you put it "most") of us lack the social intelligence to recognize things like your irrational exuberance or whatever. So that's one caste.

There's another, from elite upbringings in places all over the USA and all over the world, with all the perks and best resources and opportunties afforded by their birthright, including the most elite engineering schools. Coddled much of their life by hearing accolades about how special and smart they are, drawn from all over the world to the "Silicon Valley" or "tech" cache, you really think they're gonna listen to anything that you or me or anyone else has to say when they have been told their whole lives how smart they are, when they "know" that real estate only goes up? So there's those types, too.

Have a good night man.

Mexico is already firing across our border at the border patrol.

We need that double-layered fence built ASAP.

Depression is a political term. The "Great Depression" was a deflationary recession in economic terms. The "Great Depression" in Europe was (in many countries) the opposite -- hyperinflation. What made them depressions was the fact that the event threatened and changed governments.

I believe we are all but immune to hyperinflation, for the reason Peter points out -- we have a credible military. It's hard to collect from people who won't pay and have a lot of carrier fleets. Other examples would be Russia in the 90s, Israel years earlier.

But we aren't immune, however, to a good old fashioned liquidity trap.

But we aren’t immune, however, to a good old fashioned liquidity trap.

For that, we have the printing press! :)

It is very important to maintain a credible military. It is one of the few things that cannot be privatized.

God help us.

Yes, the most arrogant ones of those castes that I encountered were from European countries where they are never questioned, and always had job security due to the social caste systems there. We even had one of those guys commit suicide at Metallic Power after he managed to get himself fired for this atitude.
So I do think I've encountered my fair share. On the flip side, some of my closest friends were from those days and they definitely were not intreverted nerds, although even they joked about how badly their peers were at understanding economics or logistics. Then there was a group of very smart nerdy types who were so insecure they could never commit to something, they always doubted everything, and created more stumbling blocks than they solved. Nothing ever got completed because of this almost anti social behavior. I've seen it all.

Randy,

Well glad that I was wrong that you only "used to" post here.

Didn't say I hated you.

Not at all. It was I who solicited your opinion, because I respect and learn from what you wrote here, about the gold.

I asked your opinion (not advice) about gold, and you gave it. Something about the only good that would come from it would be to use it to flee the country (like maybe, some Vietnamese did after the fall of Saigon), but also something about that in that case, someone else would probably rob me for it. I took it as a double entendre, like the robbery might be the imposition of some kind of capital controls like the failed ones Mitterand imposed early in his first term.

I also noticed you expressed that sentiment to others at other price points too.

Well I didn't take your opinion as advice, but I did take note of it.

Yes, the most arrogant ones of those castes that I encountered were from European countries where they are never questioned, and always had job security due to the social caste systems there.

They need to understand that intelligence is just a commodity nowadays. If they are not flying around in private jets, they have no business being arrogant.

We are back to the days of 200+ comments per day. :)

Didn't know it was a challenge. I have to stop myself sometimes, if you get me on a rant, I'll get it up to 250 :(
I know I can't help it.

Sybrib

It's all good. It's been a while, and honestly I don't remember you particularly hating me. I was referring to the "goldbugs" who came on here with eerily regularity pasting links, pushing some "brokerage" or another, and invoking hellfire and damnation as a reason to load up on gold eagle coins.

Gold is a great component of a reasonable portfolio, in my opinion. Commodities in general might be pretty good for the near term, due to inflation. My only point was don't expect to "spend" your gold. It's not money. And I always prefer investments into things that produce cash flows.

Yes, that's what I used to say to (nicely) and about them. In this country you're worth what you can actually deliver, don't try flaunting some status thing around like you're indisposable.

Gold is just a trading vehicle to me. I am completely detached when it comes to investments.

Anyway, I'm good with leaving it as is. Just please know I don't look down on anyone who is genuine.

Take care.

It’s not money.

Gold coins *are* legal tenders, so they are technically money. However, you probably don't want to "spend" them at their face values. :)

Yes, I went physical, and yes at one time I had a 10oz bar which used to make me nervous.
That is so freakin' cool. Would you open the top of the toilet tank and point out your "water saver" to guests? Seriously, though, 10 oz. is about the break even point with the GLD ETF, which looses .4% a year. A Wells Fargo safety deposit box is $40 a year. And this still doesn't take into account security issues of buying and selling physical gold.
I am still in shock over the Euro. Any idea of who will blink first, the Fed or the ECB? And speaking of which, currency swaps are/were a huge part of the Fed SOMA portfolio. I am assuming this means that the Fed is holding a bunch of Euros, which, so far, seem to be getting more valuable. Ahh sweet, we lose but the Fed wins! Hurray for out team... let's devalue our way to prosperity.

People are going to be crushed under the palettes of $100 bills.

Randy H says:
And I always prefer investments into things that produce cash flows.

Here! Here!

I don't have an opinion on Euros. I don't even follow it but a friend emailed me yesterday and said, hey I just made some money with Euros.

Holding a 10 oz bar is a very interesting feeling. Pure gold is a beautiful substance.

Gold is beautiful but wicked. Like certain women.

I think there is a relationship there. The more gold you get, the more women you can get. The more women you get, the less gold you have left over.

It is just scary reading the 10 planks of the Communist Manifesto and matching that with US history of the period.

I think you would like reading Jonah Goldberg's new book, LIBERAL FASCISM, in which he explores the thesis that fascism and Nazism are left-wing phenomina, rather than the standard mainstream-media take that they are right-wing phenomina.

Randy, make sure you pick up the DVD of John Milius'

THE WIND AND THE LION. It shows Theodore Roosevelt the way he should have been (it adds some Hollywood touches).

Heck I'm a typical social-graceless tech guy too. Degrees in physics and applied math, worked as a circuit designer then later systems engineer before going off to the "soft geek" world of law school.

We need that double-layered fence built ASAP.

Wouldn't a simple anti-personel mine field be a much cheaper and more effective barrier? You can't get over those with either a ladder or a coyote.

fascism and Nazism are left-wing phenomina

Of course. I thought individual freedom (with attached responsibilities) is a "right wing" concept.

Wouldn’t a simple anti-personel mine field be a much cheaper and more effective barrier?

Then we will need a double-layered fence to keep people from the mine field. ;)

Only on this blog....

What happens when a disgruntled guest does an upper-decker into your gold bullion stash?

DennisN Says:
February 28th, 2008 at 8:34 am
"Wouldn’t a simple anti-personel mine field be a much cheaper and more effective barrier? You can’t get over those with either a ladder or a coyote."

Border security is a political problem meaning the goal isn't to actually make the border secure, it is to continuously talk about it and look like you are going to make it secure. You go and put a minefield there, you'll actually make the border secure and then what, nothing left to talk about.

What happens when a disgruntled guest does an upper-decker into your gold bullion stash?

It is still golden.

Peter P Says:
February 28th, 2008 at 8:36 am
"Then we will need a double-layered fence to keep people from the mine field. "

The American corporate solution would be a warning label.