Today, the new Treasury Secretary Timothy Geithner unveiled the "new" stimulus package and the financial market immediately responded. The Dow Jones Industrial Average dropped 381.99 points to finish at 7888.88, and bond prices rose dramatically as well as gold and silver.
This stimulus package does not seem to be a viable plan to me and many others. Printing money, taking bad assets off banks, and creating jobs where they are not needed is not an efficient way to deal with the crisis. The government needs to let the private sector achieve equilibrium. By interfering, the private sector will never reach equilibrium and the government will only prolong the recession.
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2009
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February
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- Peter Schiff's Reaction to Obama's State Of The Un...
- Hillary Clinton Begs to China to keep buying Treas...
- Rick Santelli defends free market capitalism
- Faces of the people who brought you THE financial ...
- Stimulus!
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- Peter Schiff videos 2/4/09
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About Me
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I am a 21 year old full time undergraduate college student majoring in Business and Accounting. I've made some pretty unlucky investment decisions in the past year trading on earnings reports and trying to double my money within days. However, I was correct on my longer term view of the economy and stock market by expecting a financial meltdown as early as October 2007. The United States economy is built up on credit and right now it is being unwound. One of the trades which I most regret was investing in the Japanese Yen and double inverse stock index by using ETFs in November 2007 such as the QID, SDS, TWM, FXY, and FXP but because of high leverage I was forced to sell them because of margin calls. If I had stuck to my longer term views, it would've made a very profitable trade. My family and friends doubted me last year but now have learned to listen to my advice wisely and seriously.
I am a 21 year old full time undergraduate college student majoring in Business and Accounting. I've made some pretty unlucky investment decisions in the past year trading on earnings reports and trying to double my money within days. However, I was correct on my longer term view of the economy and stock market by expecting a financial meltdown as early as October 2007. The United States economy is built up on credit and right now it is being unwound. One of the trades which I most regret was investing in the Japanese Yen and double inverse stock index by using ETFs in November 2007 such as the QID, SDS, TWM, FXY, and FXP but because of high leverage I was forced to sell them because of margin calls. If I had stuck to my longer term views, it would've made a very profitable trade. My family and friends doubted me last year but now have learned to listen to my advice wisely and seriously.
Current Holdings
JPM Sep 2009 20.00 put (JSAUD.X): JP Morgan Chase & Co. Put Option
UltraShort Real Estate (SRS)
PHYSICAL Silver Metal
PHYSICAL Gold Metal
If you must buy an ETF for gold or silver, take a look at CEF: Central Fund Of Canada or GTU: Central GoldTrust. Their holdings primarily consist physical bullion and are audited frequently.
With the exception of CEF and GTU, DO NOT buy the other ETFs for gold or silver. They are vehicles used by the central banks to keep the price of gold and silver down. They do this by shorting bullion that isn't physically held by the fund.
UltraShort Real Estate (SRS)
PHYSICAL Silver Metal
PHYSICAL Gold Metal
If you must buy an ETF for gold or silver, take a look at CEF: Central Fund Of Canada or GTU: Central GoldTrust. Their holdings primarily consist physical bullion and are audited frequently.
With the exception of CEF and GTU, DO NOT buy the other ETFs for gold or silver. They are vehicles used by the central banks to keep the price of gold and silver down. They do this by shorting bullion that isn't physically held by the fund.
Notable Blog Posts and Recommended Reading
4/7/09 - JP Morgan Chase with $87 in derivatives
2/17/09 - Faces of the people who brought you THE financial crisis
3/21/09 - Hedging against inflation by investing in gold and silver
***HIGHLY RECOMMENDED*** - Risks of Leveraged ETFs
11/24/08 - Citigroup bailed out for $20 billion, U.S. Government to Insure up to $306 billion in loans
2/17/09 - Faces of the people who brought you THE financial crisis
3/21/09 - Hedging against inflation by investing in gold and silver
***HIGHLY RECOMMENDED*** - Risks of Leveraged ETFs
11/24/08 - Citigroup bailed out for $20 billion, U.S. Government to Insure up to $306 billion in loans
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Disclaimer
I am not responsible for any actions that you take as a result of this blog. I am not a financial advisor or affiliated with any FINRA broker or dealer. Please note that this blog is for educational purposes only and that investment actions should be based upon your own research. You agree to hold the author of this blog free from all responsibility as a result of investment actions taken.
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