Sunday, April 03, 2011

Sunday Night Special -
Addicted to Risk
Journalist Naomi Klein looks at how our societies have become addicted to extreme risk in finding new energy, new financial instruments & more ... too often, we're left to clean up a mess afterward. Klein's question: What's the backup plan? .. 20 minutes
Anticipating the next black swan
Barry Ritholtz writes how he always gets calls from clients, media & friends on what to invest in when a disaster hits - "My answer is always the same: Follow your investment strategy. Stick to your discipline, including exit plans." .. this article focuses on exit planning .. emergency planning is what we do before an emergency not during one.
Click here to link to the Washington Post article
Could QE2 end in April?
Seeking Alpha article explores if QE2 could end in April based on the recent comment by Federal Reserve Bank of St. Louis President James Bullard - "If the economy is as strong as I think it is, then I think it may be reasonable to send a signal to markets that we're going to start withdrawing our stimulus, and I'd start by pulling up a little bit short on the QE2 program … We can't be as accommodative as we are today for too long, we'll create a lot of inflation if we do that." .. what could this mean? - could it result in massive unwinding of large positions in commodity related funds?  
Click here to read the article
"Another substitute for oil that holds tremendous promise is renewable biofuels – not just ethanol, but biofuels made from things like switchgrass, wood chips, and biomass."
President Barack Obama March 30, 2011
You Know It Must Be Special
When we feature a Glenn Beck interview, there must be something exceptional about it. This one discusses the Federal Reserve and interviews G. Edward Griffin, author of The Creature from Jekyll Island ..
40 worthwhile minutes
Price Discovery on Gold?
Hinde Capital's Ben Davies thinks gold needs to play catch up to its true value, sees potential for gold price to move to $1884 quickly: "The reasons why I believe there is potential for gold to catch up on the upside is that $1,440 level that we have talked about so many times on the show, I mean it’s amazing how that has capped the market, and I said we have to get through $1,440. Once we are through that level on a weekly closing basis we’re going to get discovery which in my opinion can easily take the gold market up $400." .. Click here to link to King World News interview 
What does $1 Trillion Look Like?
Click on image to find out
"I think the big error is to print money, I think it does not help in the long run, it can give a temporary boost to economic activity but it does not lead to sustained economic growth - in fact it creates a miss-pricing of assets and of goods and services .. for sure there will be QE3 but not right away .. I think they will do QE3, and my view is they will do QE3, QE4, QE5 until QE26 until the whole system breaks down."
- Dr. Marc Faber
Are risks starting to outweigh rewards?
Financial Post article focuses on the growing risks in the financial markets relative to the potential gains .. investors for now showing resolve & taking the scariest of pullbacks in stride .. but how much further can the cash-fueled rally go if the QE2 punch-bowl is taken away? .. if U.S. unemployment does continue to languish & housing prices double-dip, a subsequent drop in equities might force the U.S. Federal Reserve into another round of quantitative easing .. investment strategist: "It may come down to QE3 .. Whether that’s good in the long run, who knows? I just know that quantitative easing is like putting a rocket under things and given the prospect, people are not going to be short in front of it. They are going to take the ride and worry about where it stops later." .. Click here to link to the article
U.S. Flunks Fiscal Fitness Test
Former U.S. Comptroller General David Walker says the U.S. ranks 28th out of 34 nations in the Sovereign Fiscal Responsibility Index, cites "deteriorating financial condition and the deficits that lie ahead", emphasizes there's no way America can "grow itself out" of its fiscal predicament unless it takes action now ..
The 15 Best Things Warren Buffett
has ever said about investing,
Courtesy of The Business Insider,
click photo to activate slide show