naked capitalism

Pureguesswork says:

I find Faber’s comments somewhat of a stretch. Does anyone actually believe that if the governments had not increased guarantees for bank deposits, worried investors would have lined up to withdraw their money from banks so they could invest in the stock market? Of course they might have bought gold, and Faber has been advocating gold as a smart trade all along (rather than stocks). Perhaps his remarks were prompted by the actions in the gold market recently. A case might be made that the dismal performance of gold has been (at least partly) the result of government intervention in the financial markets.

Anonymous says:

Now for some good news:

Bad weather was good for Alaska glaciers:
For decades, summer snow loss has exceeded winter snowfall. Two hundred years of glacial shrinkage in Alaska, and then came the winter and summer of 2007-2008.

http://www.adn.com/news/environment/story/555283.html

Don’t believe that every scientific report, such as the BBC item above, is free from bias particularly in this field of study in which the participants are funded to investigate global warming and not global cooling – a slight difference.

mxq says:

Faber: “Now that deposits are guaranteed, basically I as an investor have no incentive to hold equities so I sell them and put my money in bank deposits”

I’m sure faber has great sources but this doesn’t make any sense.

I can’t imagine investors of any consequence were willing to tolerate equity risk just because they were waiting around for insured bank deposits. There are a ton of less-risky assets other than insured deposits that investors would have been motivated to move into (and have been) long ago.

If anything, the unintended consequences of insured bank deposits would be the draining of capital out of low-yielding treasuries or out of mmkts.

In fact, you could almost say CNBC’s incessantly hyperbolic “IS YOUR MONEY SAFE” headlines have driven more investors out of equities than a new risk-free option.

doc holiday says:

I hate this picture, it makes me angry, like Roubini, who is angry too. Think of the risk in that slippery, hair-infested tub — and what if some rouge Higgs boson particle from the Large Hadron Collider were to get into that tub –WTF then, eh? Will the owner/owners be able to save all three, or should they have used maybe just a little microscopic amount of common sense and thereby diversified these precious little assets? What do people use for brain cells these days, you’d think they have sporadic amyotrophic lateral sclerosis or some mutation which absolves them from acting like they should be suspended in soap bubbles with a drool cup!

See: http://pythonline.com/blogs/bromaynardg/paranoid

… The very next day the most popular Internet commentary was about Sarah Palin emptying McCain’s drool cup.

“SNL – Michael Palin/The Doobie Brothers
Episode Number: 76 Season Num: 4 First Aired: Saturday January 27, 1979

MILES COWPERTHWAITE: The horrible, disgusting, tragic story of poor Miles Cowperthwaite begins with nerve-wracking job of emptying drool buckets from an epileptic. (Palin, Aykroyd, Belushi, Curtin, Morris, Murray, Newman)