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10.19.2014 Financial Intelligence Report Bookmark

Will They Do More QE?

Pull up a chair and let’s chat folks.  This is going to be an interesting letter on a lot of levels, so let’s get started.

Everyone that has any interest in finance knows that the Federal Reserve has had a program in place called Quantitative Easing for the past 5 years. For those of you who don’t understand what it is, the basics are that the Fed’s have printed up money and then used that money to buy Treasuries from the Government and to soak up toxic assets like bad mortgages from the banks. In doing so, it has had the effect of constantly lowering interest rates, since they don’t have to raise rates to “lure” folks into buying the T bills. The Fed’s would buy them at any price, and any rate of return.

But the offshoot of QE was that because they were buying up toxic crap from the banks, AND because Treasuries are also bought from the “primary dealers” ( the big banks) the banks got tons and tons of money to go play cowboy in the asset markets. With virtually zero percent money for the big companies to borrow and buy back their own stock, and all the bank money sloshing around, we’ve had the best bull market that fake money can buy. Stocks are up gigantically since the beginning of the program.

10.17.2014 ECB to the Rescue? Bookmark

Last night the futures were flat for hours. Then about a half hour after Europe opened, our futures started soaring higher. Why? One of the European Central bank heads said that a QE style asset purchase plan was going to start in just days. That's all it took for the Algo-robots to pick up on it and send European stocks higher. That instantly spread to the US futures and we come into the open with the DOW futures up about 170 points.

Insiders Club - 10.8.2014 Bookmark

10.8.2014

Morning folks, it's Wednesday.  Is that good or bad?

I'm sure you all know what happened yesterday. The market started out ugly and then got uglier as the day wore on.  When it was all over we had lost more than 250 DOW points, and the S&P had lost all of its nearby support levels.

Was there any one single reason for it? No, not at all...it was a classic combo platter of over valuations, the end of QE, some earnings warnings, bad global news, and a host of other items that added up to a sour mood.

Silver's Relentless Beatdown Bookmark


Commentary:
 

NOTE>>> I have a lot to say about this Ebola thing, but since it just hit the US on Tuesday, I’m not prepared. But this weekend I’m going to talk about the entire situation. Stay tuned.

Another Note>> 
We've created a Facebook page where I'm going to be making comments about the market on a fairly consistent basis. So please go there and do the "like" thing so that any alerts or market comments I make show up on your page.

 https://www.facebook.com/investyourselfnews

 
Silver, the Fraud Continues
 
I’d like to start this article by posting a few questions a lovely lady sent in to me this week, and I think all of you should see it and we can talk about it. So, let’s get to Elizabeth’s questions…

Insiders Club - 10.1.2014 Bookmark

10.1.2014
Good morning all, there's a lot to talk about....

The single biggest news item by far is one that I had a hunch would show up eventually and it did... Ebola is in the US. Something has been very very wrong with this particular Ebola outbreak since day one and frankly I'm not sure just what we're dealing with here. Let me give you an example of what I mean...

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