vlogolution network » stimulus

Why People Don’t Buy Gold, and Why it’s Stupid to Think for Yourself

Alexander P Morris — Sat, 26 Mar 2011 20:50:14 +0000

Why people don’t buy gold, and why it would have been smart to buy a house at the top of the market, so long as everyone else was doing it, and famous well-known economists like Alan Greenspan, Ben Bernanke, and others said real-estate would never go down. Learn why it’s stupid to think for yourself. Very funny video, and with our current state of affairs, sadly quite true…

On the other hand, it also helps explain why there is so much opportunity in the markets, as people make the same mistakes over and over again, as they try to avoid “feeling stupid”, or being called “strange and weird”.

Note: Posting this video wasn’t meant to suggest that NOW is the best time to buy gold (alas, it is already up over 6 fold over 10 years), and in fact in the past I’ve suggested that silver would likely be an even better investment longer term (as does seem to be the case so far). However, perhaps for the real point… don’t be one of the lemmings running out to buy it when everyone’s finally talking about what a great investment it is and how it too can’t ever go down. There is a time and cycle for everything. In the meantime, study, research, make up your own mind, and possibly consider picking some up when it’s unfavorable or unfashionable to do so. (You can also check out some of the related links I posted below).

As Benjamin Graham once said, “You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right.”

Great Historical Overview of Currency Failures and Hyperinflation

Alexander P Morris — Sat, 19 Mar 2011 20:00:51 +0000

Great video presented by Timothy Terrell at the Mises Circle at Furman University: “The Coming Currency Crisis and the Downfall of the Dollar”. For those who are interested in better understanding fiat currencies and reckless inflation from a history perspective, this video provides a terrific overview.

You’ll also gain a better understanding of the magnitude of damage and theft inflation perpetrates against a country’s people (and especially against its middle and lower classes who least understand its disruptive effects).

Everyone’s thrilled when Apple’s iPad2 provides a greater bang for the buck for less money than the original. So why do governments and central banks try and convince people that higher prices are good for everything else?

Insights to Identifying Potentially Lasting Market Bottoms

Alexander P Morris — Thu, 16 Dec 2010 00:40:39 +0000

Back in February 2009, with the markets plunging relentlessly day after day, after day… I still recall how many traders were waiting in anticipation for some sort of crazy, panicky, high volume day to mark a capitulation bottom. This latest market downswing took the DOW down nearly 30% in just over two months from 9,088 to a low of 6,470 on March 6^th, 2009.

Many traders whose market analysis and insights I respect seemed to be waiting for some massive “fireworks”-type event that would all but shout “THE LOW IS HERE”; a sign that all the weak hands have most likely thrown in the towel, and that it was now time to BUY BUY BUY hand over fist.

Of course, Mr. Market will never make it quite that easy, even for its smartest participants to figure out what its current “jig” will be. The DOW closed below 6,700 for several days before breaking out higher and closing above 6,900 on March 10^th, 2009 on a bit higher average volume. It also marked the first day since this leg of selling began in early February that the DOW was able to close above its downward-sloping trend-line. However, that super-charged high volume capitulation day we were all looking for and expecting to occur never materialized. While in September and October 2008 the VIX volatility index hit highs just over 80, in February and March 2009 the VIX topped out in the low 50’s. This peak was 35% lower than its earlier spikes, even though the market was now trading at lower price levels.

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Chinese Professor Video – The Deficit Trials – Who will you be working for in 2030?

Alexander P Morris — Mon, 22 Nov 2010 21:36:38 +0000

Citizens Against Government Waste (CAGW) recently unveiled a national ad addressing our country’s spending addiction, the dangers of relentless deficits, and the corrosive nature of our national debt.

This new ad, which features a chilling look at one potential future scenario if America continues on its current destructive fiscal trajectory, is a 2010 homage to “The Deficit Trials,” a 1986 ad that was produced by W.R. Grace & Co. For those who were able to view it, the ad caused a sensation; it was considered so controversial at the time that the networks refused to run it.

J. Peter Grace, CAGW’s co-founder and the chairman of President Ronald Reagan’s Private Sector Survey on Cost Control (the Grace Commission), was alarmed about what the debt would do to future generations. The national debt was $2 trillion in 1986, when “The Deficit Trials” ad was denied broadcast time; today the debt stands at $13.7 trillion and is projected to reach 140 percent of GDP in two decades, the time in which the new CAGW ad is set.

The new ad is part of an ongoing communications program in CAGW’s decades-long fight against wasteful government spending, increased taxes, out-of-control deficit spending, and a crippling national debt that threatens the future and survival of our country. CAGW plans to run the ad on major cable networks throughout the rest of 2010 and into 2011.

“Speaking the truth in times of universal deceit is a revolutionary act.” — George Orwell

“Fear the Boom and Bust” a Hayek vs. Keynes Rap Anthem

Alexander P Morris — Fri, 19 Nov 2010 01:25:22 +0000

I had posted this awesome rap video on my facebook page earlier this year, but never got around to making a blog post about it. Another great video that lays out the craziness of the “boom and bust” cycle in modern economies. What’s more crazy is that the twisted version of Keynesian economics pursued by governments today would have Keynes himself rolling in his grave in disgust. Somehow politicians conveniently forgot that key little detail that governments are supposed to SAVE when times are good. Instead, politicians spend like nuts in good times, and SPEND LIKE MANIACS when times are bad. Why let such key details interfere with the opportunity for politicians to promote their own agendas… Enjoy the show!

ps. If you enjoyed this video, be sure to check out the links below for the sequel!