So What Exactly Does 'Bank Recapitalization' Really Mean?

[expat_panama]

...plausible scenarios of what our political and macro-economic picture will look like that are not the kind I want my kids living in. As to the commodity prices, your chart shows them doubling over the last three years...

The chart shows commodity prices 14% higher now than three years ago and you see it doubling. This isn't working.

 

[JimBowie1958]

...plausible scenarios of what our political and macro-economic picture will look like that are not the kind I want my kids living in. As to the commodity prices, your chart shows them doubling over the last three years...

The chart shows commodity prices 14% higher now than three years ago and you see it doubling. This isn't working.

Lol, I am looking at the end of 2008 where commodities are hitting their nadir, adding three years and getting to last few months of 2011.

Are you referencing Jan 1 2008?

The graph looks like the granularity is in months, so why not reference the end of 2008 as we are in the end of 2011?



I'm getting the feeling that you're trying to pick a fight, lol.

 

[expat_panama]

...getting the feeling that you're trying to pick a fight...

Yikes --no way! These text chats are hard to convey the 'wink & nod' we get with person to person chats, but we try.

Anyway what we got with commodity prices is that as you pointed out (thanks) something's been happening and the idea is to look and decide what makes sense. Here's commodity prices compared to consumer purchases (cpi) since 1980--

--plotted for me as a graph guy but click here if you're a number guy. So since 1980 commodity prices have almost doubled while everyone else's prices have tripled. Most of commodity prices moved after 2006, that must mean--

-> rising commodity prices are bad because we're worse off now,
-> rising commodity prices are good because the worst happened in '09 when they fell,
-> rising commodity prices are bad because they came back up,
-> rising commodity prices are good because the've been comming back down again since March.​

Commodity prices don't seem to seriously mean anything because they go anywhere they want and never affect us the same way twice.

 

[JimBowie1958]

...getting the feeling that you're trying to pick a fight...

Yikes --no way! These text chats are hard to convey the 'wink & nod' we get with person to person chats, but we try.

Cool, and to add to the fog I am not good at sensing what people infer or imply at all. I take everything seriously, etc. I guess I am stooopid that way. Short bus special, lol.

Anyway what we got with commodity prices is that as you pointed out (thanks) something's been happening and the idea is to look and decide what makes sense. Here's commodity prices compared to consumer purchases (cpi) since 1980--

--plotted for me as a graph guy but click here if you're a number guy. So since 1980 commodity prices have almost doubled while everyone else's prices have tripled. Most of commodity prices moved after 2006, that must mean--

-> rising commodity prices are bad because we're worse off now,
-> rising commodity prices are good because the worst happened in '09 when they fell,
-> rising commodity prices are bad because they came back up,
-> rising commodity prices are good because the've been comming back down again since March.​

Commodity prices don't seem to seriously mean anything because they go anywhere they want and never affect us the same way twice.

I see what you are saying and you are right about things over the course of the last few decades. What the gurus have been spot on about has been the loss of value for the USD since the collapse of the last real estate bubble, and with that time frame, the loss of purchasing power is more dramatic when taking the USD in ratio to commodities.

I think you are looking at a much longer time frame than I am and so we are talking past each other kind of.

 

[B. Kidd]

Zombie protestors protesting ex-zombie banks made temporarily healthy at the expense of taxpayers.
Zombies' wrong costume. Should've dressed as vampires.

 

[JimBowie1958]

Zombie protestors protesting ex-zombie banks made temporarily healthy at the expense of taxpayers.
Zombies' wrong costume. Should've dressed as vampires.

lololol

You got that one right, and their sucking the life's blood out of this country.

Of course, your typical local bank isnt in this category. I am talking about the bailed out too-big-to-fail banks.

 

[expat_panama]

...What the gurus have been spot on about has been the loss of value for the USD since the collapse of the last real estate bubble, and with that time frame, the loss of purchasing power is more dramatic when taking the USD in ratio to commodities....

The gurus never cease to amaze me at their ability to make others think they're smart by just making up nonsense about economics.

First, no guru predicted (like, before) that real estate values would double from Clinton to Bush, then fall from '07 to '09, and level off at 50% higher than Clinton's era (after adjusting for inflation). Second, commodities traced a course completely different. Third, purchasing power loss from inflation hasn't happened, and devaluation with foreign exchange rates hasn't happened.

 

[JimBowie1958]

...What the gurus have been spot on about has been the loss of value for the USD since the collapse of the last real estate bubble, and with that time frame, the loss of purchasing power is more dramatic when taking the USD in ratio to commodities....

The gurus never cease to amaze me at their ability to make others think they're smart by just making up nonsense about economics.

You sound jealous. Yes, Mike Shedlock and the guys at the Daily Reckoning did in fact predict this stuff. I know; I read it as events unfolded and beforehand and you didnt.

First, no guru predicted (like, before) that real estate values would double from Clinton to Bush, then fall from '07 to '09, and level off at 50% higher than Clinton's era (after adjusting for inflation).

Did.

Second, commodities traced a course completely different.

Of course they had a different track record than real estate did. Who said they would?

You dont seem to be discussing the topic with me but with some imaginary person that is making claims I am not.

Third, purchasing power loss from inflation hasn't happened, and devaluation with foreign exchange rates hasn't happened.

Those are two sepereate things. While currencies are in a race to the bottom via being over-printed by the central banks, commodities are not so simple to ramp up in supply, so they naturally incrase in value as you own chart showed.

Still dont get what is buzzing your ear to pick an argument here about things I have not claimed.

 

[expat_panama]

...no guru predicted (like, before) that real estate values would double from Clinton to Bush, then fall from '07 to '09, and level off at 50% higher than Clinton's era (after adjusting for inflation)...

Did.

Huh. You say your guru predicted it and all we have to go on is your memory. There is nothing in writing, no link, no dates or quotes.

Look. We both know that this is simply not believable.

 

[JimBowie1958]

...no guru predicted (like, before) that real estate values would double from Clinton to Bush, then fall from '07 to '09, and level off at 50% higher than Clinton's era (after adjusting for inflation)...

Did.

Huh. You say your guru predicted it and all we have to go on is your memory. There is nothing in writing, no link, no dates or quotes.

Look. We both know that this is simply not believable.

It is entirely believable since these guys are Austrian School economists, and that school of thought, among other things, places a great deal of importance to the availability of credit and its affects on inflation and the creation of market bubbles due to too much credit available.

I'm not making this stuff up, but go dig for yourself. Til then it's rather rude to call me a liar, lol.

Mike Shedlock - MisesWiki

Mike "Mish" Shedlock is an American investment advisor and financial commentator. He operates the blog MISH'S Global Economic Trend Analysis and believes in the Austrian School of economics.[1][2]

Shedlock is an avid supporter of Ron Paul and other libertarian-leaning political candidates.[3] He sides with Murray Rothbard and believes fractional reserve lending is inherently fraudulent, concluding that "[t]he case is irrefutable."[4]

On July 10, 2007 Shedlock called the top of the stock market suggesting that "the current trend is exhausted,"[5] missing the actual top by 3%.

Right now, Shedlock is in an ongoing debate with others like the editors at Zero Hedge regarding whether we will fall into a hyperinflationary period or a deflationary period, and IMO, it seems that Shedlock is once again being proven right.

Economic News and Ideas on Debt, the Market, Gold, Oil, and Investing.

That site has an archive of their old articles. You might enjoy reading some of it, might not. But you can see what they have claimed in the past and not.

Anyway, I subscribe to the Distributist model n ot the Austrian, as I think the latter is too harsh on economic failure for the average person and causes too much property to accumulate at the top of the scale. But the Austrians do have the handle on the affects of inflated credit.

 

[expat_panama]

...no guru predicted (like, before) that real estate values would double from Clinton to Bush, then fall from '07 to '09, and level off at 50% higher than Clinton's era (after adjusting for inflation)...

Did.

...nothing in writing, no link, no dates or quotes. Look. We both know that this is simply not believable.

...go dig for yourself...

We're done here, It's been fun.

At any rate, you might be interested in "http://www.usmessageboard.com/econo...-bernanke-pledges-support-for-us-economy.html". it's about the dollar's devaluation, or lack of thereof.

Cheers and thanks for the fun chat!