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Easy re-financing for all? What do you think?

Big Al
January 9, 2012

Only a rumor at this point, but there is talk of virtually automatic re-financing for almost anyone who wants it.

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Discussion
36 Comments
    Jan 09, 2012 09:41 PM

    BRIBES FOR VOTES!!!!!

    Jan 09, 2012 09:47 PM

    Good article & interview over at SILVERSEEK…….THREE ELEMENTS OF MANIPULATION. by THEODORE BUTLER. interview is over 20 minutes long but worth a listen.

      Jan 09, 2012 09:06 PM

      Ted Butler is a very interesting guy, Mr. Irish.

      Funny thing, I have never talked with him. Not sure why, just never had the opportunity.

      Big Al

    Tex
    Jan 09, 2012 09:48 PM

    Clever redistribution (if only used as a publicized rumor) to reassure our dear, high, exalted, mystic ruler’s re-election.

      Jan 09, 2012 09:06 PM

      Heck Tex,

      A big chicken in every pot!

      Big Al

    Jan 09, 2012 09:54 PM

    JUST A THOUGHT Does AMERICA really need a PRESIDENT ?

      Jan 09, 2012 09:07 PM

      Hi irishtony,
      We do need a president to lead. we do not need a dictator which is exactly what we have now.

      Jan 09, 2012 09:07 PM

      Yup Mr. Irish,

      But definitely not me!

      Maybe you could be the “second” person to be president who allegedly wasn’t born here!

      Big Al

    Jan 09, 2012 09:09 PM

    Hey Big Al,
    At the risk of sounding like a “broken-record” I would like to reiterate an investing theme to all bloggers out there. No matter how volatile the market gets, I believe you must “hold the fort” on PM’s for the duration. If it’s OK with you, I urge the listeners and participants to read James Turk’s latest blog on KWN. But what is really interesting, is he very briefly touches on having a “long term” line of thinking of what do you do as the PM market matures – its like then what?
    I have discussed this with my investment partner on several occasions. My plan is to get out the same way on got in. That is to do a step-by-step exit plan and to invest those funds in say, income investment real estate. That way, you divest out of one “maturing” investment vehicle to one that is hopefully starting a new wave up.
    I think it is important to have an a sketch outline of a long-term plan in place that emphasizes action and pro-action NOT active and RE-active.
    This PM market, I believe, is far from maturing, but given the political bozos could make a surprising call or two that expedites the time frame – say out only two years, for example – preparation from start to finish will help you achieve your overall goals in a more and give you a more concrete in exercising a game plan.
    BTW, another example would be to slowly divest out of bullion – leaving some in for diversification sake – and gathering more knowledge and info on say, the miners exploration markets and step into them on a systematic basis. Then diversifying from there.
    There are a lot of variables out there that could render a “plan” moot – but, my whole point is to have a plan and work your plan. Instead of making investment decisions on the fly or haphazardly!
    All the best to everyone –
    Marc

      Jan 09, 2012 09:08 PM

      Marc,

      You are absolutely correct. Anyone who consistently makes money in the long run would agree with you!

      Big Al

      Jan 09, 2012 09:44 PM

      Hello Marc,
      I agree completely.
      Great post!
      Best

        Jan 10, 2012 10:07 AM

        HI Mr. C,

        It is really important to continue to stress diversification!

        Big Al

          Jan 10, 2012 10:44 PM

          Yes Sir Big Al,
          You are so correct.

    Jan 09, 2012 09:14 PM

    Hi Al
    The administration has since denied that they were implementing this plan. Of course, it is an idea so I am sure it will happen. This will certainly buy the votes to get him a second term. The 1.2 trillion it will cost will be paid for by all the people who do not use this program. Just another stimulus at the expense of the taxpayers.

    Jan 09, 2012 09:19 PM

    Al,

    I am with you.
    History on the loan modification program of the last several years has proven that a large majority of the borrowers did not make 3 monthly payments on their new loans.
    BTW, doesnt the US government own a good proportion of these loans?

    Bobby

      Jan 09, 2012 09:10 PM

      Yep, a portion, Bobby

      By the way, what ever happened to paying for your own mistakes. I guess since the lenders are not going to pay, we the taxpayers will! Only in America!

      Big Al

    Jan 09, 2012 09:20 PM

    Marc is correct on PM’s.. Buy and hold ’em. Do not invest or trade in ETF’s anymore.
    Buy junk bag silver. Pay all debts in full. A few months cash in the house. NO safety deposit boxes. Pay off cars and house. Have a second residence–maybe an apartment above a store you own for inventory to trade not to make sales. Pray a lot. Trade commodities and hold choice shares to June. -lots of volatility this year with wider trading ranges. Some great shorts coming in the fall – Traderrog

      Jan 09, 2012 09:12 PM

      Hi Roger (or anyone),

      For a long time I have been of the belief, just like most of us here, that PMs are the place to be and have a bright future. This, I believe based on fundamentals.

      But there are other variables which have emerged during the last several months which point to a more complicated picture.

      Firstly, there is a growing divergence between the paper gold and the physical gold markets. It seems that more and more investors are turning their backs on paper gold. They are either getting out altogether or buying physical. It is therefore conceivable that the paper gold price we always hear quoted will continue to drop, while the “premiums” on physical rise.

      In other words, we might be dealing with two separate markets. The paper markets would become less and less relevant with the physical becoming more dominant. This would make everything more complicated.

      Secondly, and more importantly: it increasingly looks like the EU won’t be able to hold it together. The public is being prepared for Greece’s departure from the EU and quitting the euro. If/when this happens this will lead to a massive flight out of the euro – but to where? The US dollar – once again.

      While gold is often called and thought of as a “safe haven” by us, it acts that way not nearly as often as it “should.” Should there be a massive flight out of the euro (and this is not at all unlikely), the US dollar will surge once again, and perhaps A LOT MORE than we are now prepared to think.

      In short, gold is perhaps more likely to sell off AGAIN, rather than be on the verge of resuming a sustainable climb.

      Here is a link to an article which takes that position.

      http://www.kitco.com/ind/maund/jan092012.html

      Comforting comments appreciated!

      Good luck to all…

        Jan 09, 2012 09:13 PM

        HI Peter,

        You raise some excellent points.

        I am not convinced that a significant rise in the U.S. dollar would hurt gold/silver as much as you might think. Maybe this time folks have learned a long-term lesson.

        One can hope (for their sakes),

        Big Al

        Jan 09, 2012 09:58 PM

        Hi Peter,
        Even if there is a flight to the dollar it is still fiat currency. The printing presses are still running. All fiat currencies are being devalued. Read currency wars by James Rickard. Gold and silver has intrinsic value. It is the best place to be. Any sell off is a buying opportunity.

        Jan 09, 2012 09:24 PM

        Hi Al and Anne,

        We are agreed that the PMs can’t be replaced by paper and that paper will continue to depreciate. What I’m suggesting is that gold could be held down deeper and longer than we think possible.

        Another point. If we are thinking of buying oil stocks because of Iran, we might as well stay in mining stocks. Both should be likely to benefit. The question is, which would stand to benefit more?

        With gold there is also the possibility of a sudden reversal in psychology. This could happen when the flight out of euros into the USD is complete. That would be the point, and not sooner, when people rub their eyes, scratch their heads and say “now what?”

        Manufactured turmoil in the Persian Gulf could also be the perfect cover for more QE. This is going to be the most interesting (and dangerous) year in a long time for all of us. It would have been ideal to get out in September, but if I sell now I will probably have picked the bottom. Earnings season is almost here and a lot of gold producers are sporting some pretty nice profits.

        But this is the question I have asked before, which no one can answer: what are the theoretical limits on keeping the price of gold down and for how long?

          Jan 10, 2012 10:12 AM

          Morning Peter,

          Regarding the theoretical limits on keeping the price of gold down and for how long, I am convinced that no one can accurately answer that question.

          Regarding turmoil in the Persian Gulf, I am not convinced that it is manufactured. By the same token, I find it hard to believe that the Iranians could be so stupid as to take on the world. Unless, of course, they know something about China and Russia that the rest of the world does not. And that, is very, very possible!

          Big Al

        Jan 09, 2012 09:41 PM

        Hello Peter,
        I agree with Big Al. Good post and great points to ponder. To your point that
        “this would make everything more complicated” is correct, I believe. Certainly, the orchestrators of this grand scheme are brilliant and crafty people. They will complicate things as much as possible in order to hide the truth from the masses and continue the charade. But, I believe they will outwit themselves in the end. There very well may be a flight to the dollar when the EU collapses, but I think this will be shortlived, even if the flight into greenbacks is exceedingly strong initially. The money traders will head back to the dollar as a last ditch desperation move. As many have said, “the trading play from currency to currency is nothing more than a race to the bottom for all fiat currencies”. At some point confidence in fiat money will disappear and then panic sets in on a massive global scale. It will be a mad scramble into pms as the only true and last hedge of protection will be sought by everyone. How and when this happens is anybody’s guess, but I want to be around for the ride.
        Good to have your thoughts.

          Jan 10, 2012 10:13 AM

          Good to have your thoughts also, Mr. C

          Big Al

            Jan 10, 2012 10:48 PM

            Thank you Big Al.
            I wish I was smart enough to come up with this stuff on my own, but alas, I’m not. Most of what I think I know I have learned from others. Your show is a huge part of my education process. I appreciate your positive feedback as it helps to assure me that I’m thinking correctly.
            Muchas gracias!

      Jan 09, 2012 09:29 PM

      Trader Rog –
      Thanks for the input!
      Marc

      Jan 09, 2012 09:45 PM

      Hi Trader Rog,
      I agree wholeheartedly. Great advice. Much wisdom in your comments.
      Thanks much.
      Best to you

    Jan 09, 2012 09:14 PM

    HI Marc,

    Don’t thank Trader Rog because he might think that he is valuable! (Joke!)

    Big Al

      Jan 09, 2012 09:23 PM

      My Bad!! HA HA

    Jan 09, 2012 09:27 PM

    Peter, good points. If only 1-2% of the population want it how high can it go up?
    Maybe the kenysians are right and printing will cover everything.
    I read central banks only have about 20% of the worlds gold, my guess is they need a little more than that for gold inclusion to back paper.
    From all ive read my pm could be going to my kids, but i do believe that the money supply equals the price of everything. Mike maloney has some excellent explanations of gold = money supply. All makes sense to me, time frame? my guess is it has somthing to do with how much the central banks have.So, i figure they keep hammering the price till they get what they figure they need, on the other hand it is said Rothchilds are worth 500 trillion, couldnt they just buy it up? as well as every mine that produces.

      Jan 10, 2012 10:15 AM

      HI benb,

      I am curious where you read that the central banks only have about 20% of the world’s gold.

      Big Al

    Jan 10, 2012 10:45 PM

    I believe the risk on trades this year by the big boys is gold, silver, and oil being a leading indicator. Rumor has it the economy is on the mend with new jobs created. Big business is buying ahead of price advancements of commodities they need. I agreewith Trader Rog’s assessment for the next few months. Not loosing any sleep.

      Jan 10, 2012 10:31 PM

      I agree Keep Stacking. The recent bump in the new year for miner’s seems to indicate they feel the commodities are needed once again, for all that wonderful organic US growth (which they believe) is on the way. Actually, I think there will be some hiring in the US this year. Too bad we’re planning on yet another $1.6 trillion deficit, to add to the trillions already owed. In any other time, it might have been a true recovery.

      Feb 24, 2012 24:09 PM

      Yeah, see you made me laugh out loud with your cooratn in yesterday’s post. But I didn’t comment.I think we should have a monthly bloggers breakfast when we get to heaven. I’ll make the coffee!!

      Feb 26, 2012 26:06 AM

      R9RTl5 nttragngrysr

    Jan 10, 2012 10:33 PM

    We heard this idea in Sept/Oct 2011, and it is not surprising we’re hearing it again 10.5 months to election time. The first time might have been a trial balloon to test reactions.

    I agree with Al. What helps us today, one time, usurps centuries of contract law. I’m not sure the tradeoff is worth it, particularly since none of the actual tainted debt is removed, just refi’d at a lower coupon. Helps the debtor, makes the debts more dangerous to those trying to hold the collateral.