INVESTORS WERE REALLY WORRIED ABOUT DEFAULT….
Horace Greeley famously said:
“Common sense is very uncommon.”
The last few weeks have been an exercise in an excruciatingly low level of common sense. The country is taking this whole default idea very seriously. It only further proves how little the public really knows about the modern monetary system and how misguided the political process has become because of this misunderstanding.
This is visible in real-time in the markets today where silver prices are collapsing and treasuries are rallying on the back of the announcement that Congress is very close to a debt ceiling agreement. It’s never a good idea to datamine using intra-day moves, but it’s clear that some investors were betting on a USA default via silver prices or hesitant to buy treasuries because of this debate:
Hey TPC, your favorite company announces after hours. You think the clown analysts allowed them to SANDBAG AGAIN!!?? LOL. good times.
I haven’t had time to run the numbers on Apple. They’ll beat and sandbag. Who cares.
AAPL will eventually have a $1T market cap…
“It only further proves how little the public really knows about the modern monetary system and how misguided the political process has become because of this misunderstanding.”
Not the public TPC… But Wall Street !
Debt ceiling today, Greece on friday, let’s see if the summer low volume illiquid market will squeeze the bears again to a new top…
Apple Computer, the perfect representative of the MMT movement: toys for adult children. Hey kids, lets go back to the computer and print some more money when the utility bill increases.
HillBilly,
Please stop with the childish and ridiculous comments. This isn’t the place for it. I write a very serious commentary here and you are detracting from it by writing these sorts of comments. I very much welcome informative and factual debate. I actually prefer that you disagree with me. But please try to do so in a more constructive manner. I really don’t like having to put people’s comments on moderation, but if you keep proving that you can’t sustain a relatively mature level of discussion then you leave me no choice.
Thanks,
Cullen
I guess you better respond to this:
http://www.zerohedge.com/article/sorry-mmters-economy-doesnt-exist-and-gdp-bogus#comments
I’ve seen Bob English’s work on MMT before. These guys believe that societies can operate without governments. They’re Bob Murphy types. You know, the guy who dreams about living on coconut island where the coconut tree deficit spends.
It’s impossible to argue with these people because their perception of reality is so skewed that it’s hard to believe they have a following. Arguing about not having governments is like arguing about playing football on Jupiter. What’s the point? It’s never gonna happen. Their entire line of thought it wrong because their most basic starting point is 100% unrealistic. They don’t like MMT because it describes our actual reality and doesn’t conform to their mythical world.
CR-….I’m official…I’m no longer a white pawn in the world of TPC-
I’ve uploaded a picture of myself from my early days at Morgan Stanley back in 97.
It took me awhile.
Speaking of Morgan Stanley..I must admit I’m starting to feel like Jermey Granthem. We’ve raised cash up to 40% and days like today I accept but I’m always a tad frustrated seeing 6-7% in one day on positions.
If you live in Europe and don’t view the US as the center of the world, precious metals (or the Swiss franc) as a hedge to the Euro/default may make still sense.
That said, there are over 20k gold futures call options at a $1600 strike price (value of $3.7 Billion). It will be interesting to see if gold closes under the strike price when they expire Wednesday.
If gold was following silver I may “get” the tarde, but it is not. Seems hot monay favors silver. Is it pschological beacuse silver is “cheaper” than gold? I know that 10k in GLD is the same play as 10k in SLV but maybe it’s that simple and the smaller players are running this game. No idea. Great Tweet on the value of analysts re Apple today.
‘Government’ within the context of MMT seems to actually mean “Monetary Sovereignty” residing in some internetworked computer completely detached from the real local physical economy that the said ‘Government’ is supposed to be benefiting. Thats not a government, thats a treasonist central bank with even more power than it had before. I don’t think industrialists in control of their own banks (note the plural) would commit suicide by getting rid of nuclear reactors for a hail mary in renewables like Germany is doing. All this talk of ‘government’ and ‘productive’ by MMT’ers and its nothing but bigger badder central banking.
I’ve done a huge amount of work condemning the role of the banking sector and the central bank…..You’re obviously not that familiar with it.
An alternate explanation for silver’s move might be that options on futures expire soon (as another commentator noted on gold) and it might be in the writers’ interest to avoid having to deliver the contracts.
We’ll see.