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False reporting is immoral and dangerous

Big Al
January 18, 2016

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Discussion
84 Comments
    Jan 18, 2016 18:35 AM

    WE live in “DANGEROUS” TIMES…………….

    Jan 18, 2016 18:49 AM

    Ain’t that the truth!

      Jan 18, 2016 18:05 PM

      Great topic Al you are correct in your statement.

      I heard an interview with bill Holter today saying Canada was experiencing hyperinflation, I ask the Canadian here if this is true, I did see that the loonie dropped to .68 today.

    Jan 18, 2016 18:15 AM

    Anything to hand that might suit Zerohedge seems to pass muster, but accounting firms that audit are not regulators and have a vested interest in promoting whatever might be the status quo.

    Just look at what happened during the collapse of Enron and Worldcom, for for that matter, the fact that banks launder money for drug cartels.

      Jan 18, 2016 18:22 AM

      The same goes for Moody’s, S&P, etc. (at least for the last 40 years — prior to that, they worked for the investor, not the entities being rated).

        Jan 18, 2016 18:26 AM

        ditto

        Jan 18, 2016 18:26 AM

        I think it really has to do with derivatives contracts that have force majeur clauses or perhaps operate under IFRS accounting rules rather than GAAP that allows for extensions on mark-to-market evaluations. Just about ant loophole will do.

          Jan 18, 2016 18:30 AM

          Mark to market does not pertain to interim statements.

          Jan 18, 2016 18:33 AM

          Could be, but don’t you think they’ve often been a “little” too generous with their ratings even aside from that issue?

            Jan 18, 2016 18:02 PM

            I guess we’ll have to wait until next month for end of fiscal year audited financial statements. I’m not terribly surprised overall, since the vast majority were betting on oil politically and economically which simply didn’t pan out.

            Jan 18, 2016 18:04 PM

            Of course Matthew, don’t you?

      Jan 18, 2016 18:25 AM

      Thanks for posting FRANSIX. ……I was thinking of ENRON, when listening ……lol

        Jan 18, 2016 18:26 AM

        AND Author Anderson…………..

        Jan 18, 2016 18:50 AM

        Any article discussing Mr. Fastow on the lecture circuit freely admitting to being the chief loophole officer and how aggressively the balance sheet was overturned. But he was the CFO, not the accounting firm, and accounting deregulation went much further once it was found that upper management could go to jail.

      Jan 18, 2016 18:29 AM

      The accounting firms must adhere to FASB.

        Jan 18, 2016 18:36 AM

        False Accounting Sinister Banking ……FASB…. 🙂 ?

          Jan 18, 2016 18:06 PM

          True, accounting firms adhere to FASB, but deregulation has ushered in IFRS as the standard accounting in firms that accommodates deregulation and eases draconian mark to market obligations.

          Jan 18, 2016 18:05 PM

          Not really, Muskovite

            Jan 18, 2016 18:11 PM

            I have inside information that PUTIN, is thinking of giving a Siberian Tiger to Obama for a going away present…..cage included., that will be after he gets back from vacationing in Dubai…………………….lol

    Jan 18, 2016 18:24 AM

    Very interesting topic guys. Most articles are only half truth in the financial industry. ZH is far more accurate than any MSN outlet. Even the revered M Armstrong and J Rickards only tell half truths.

    It is possible that the fed could have some type of regulation regarding the energy bubble companies. Remember, the companies issued bonds based on a oil price and stock price that has been cut in half. These bonds had credit lines pulled on them that the banks have funded. The money spent could very well be a takeover of assets based on the amount of money issued. The fed does regulate the banks and their investments. In this case it is junk bond assets.

    It looks very similar to the subprime mortgage crisis where all portfolios from mortgage companies were forfeited ( given for free ) to the big four central banks. In essence, it was a asset takeover and the central banks got rid of their competition.

    I could see the big four taking over these oil assets…as they did fund the collateral.

      Jan 18, 2016 18:32 AM

      Chartster………..ditto…..on your first line.

      Jan 18, 2016 18:34 AM

      I cannot disagree with your comment about half truths, Chartster

    Jan 18, 2016 18:26 AM

    Hi Big AL
    As I said for 18 months FORGET gold other then a trade. Stocks had a small bounce but look pathetic on and index basis.
    As for oil if and when it reaches $24-25 SOON then there will be a good opp to buy equities. XEG.TO should be yielding 5%+ and a safer long term trade. Paid to wait too…..Oil should reach $50 EOY. Many high cost producers will go titters! Minimal upside after that.
    LNG is TOAST. We have fools running things in this country….Loonie says so…
    Gold stocks are a crap shoot IMO

      Jan 18, 2016 18:32 AM

      Thanks for the comment, Bill.

      Jan 18, 2016 18:45 AM

      So Bill, you don’t think that gold’s performance so far this year is telling you something? Sure, it’s only up 2.65% but that means it is beating the dollar by that amount even though plunging stocks results in big demand for dollars by default (when you sell stocks you automatically buy dollars).

      Gold is worth about 12% more Dow in just two weeks. It will be volatile, but gold is going to outperform conventional stocks for a long time.

        Jan 18, 2016 18:23 PM

        I’m NOT a short term trader.
        If you own Gold.
        If you want to know where gold did well. Forget the dollar and look at it in loonies!!
        Gold and DOW relationship naaaa don’t care. Only care about the big trend changes yes.
        It showed clearly when to get out of gold…

        http://stockcharts.com/h-sc/ui?s=%24INDU%3A%24GOLD&p=D&yr=18&mn=0&dy=0&id=p29021364721&listNum=1&a=299066645

          Jan 18, 2016 18:51 PM

          Unless stocks are going to blast to new highs and/or gold is going to crash, your chart shows a counter trend rally that most likely topped before even retracing 38.2% of the preceding move down. To fall so short of that Fibonacci first base is bearish.

          http://schrts.co/mMbVWt

          Jan 18, 2016 18:17 PM

          Is that another guess?
          I think you expected gold to be in some huge bull market by now?
          And what have I been saying for eons? Have I been wrong?
          Golds an individual currency play and the amount I need to invest is not 5k.
          You are a micro manager. No offense but I have little time for short term swings.
          Your splitting hairs for me.

            Jan 18, 2016 18:19 PM

            You are a hell of a gold nut man!

            Jan 18, 2016 18:38 PM

            Gold IS in a huge bull market right now. The secular uptrend is intact and the downtrend that started four years ago was corrective in the big picture. Nothing has happened to suggest that gold made its final high in 2011 or is heading for a secular bear market.

            Since I’m a fact bug, I remain a gold bug.

            Btw:
            Had you put a million dollars in gold between 1999 and 2001, it would be worth 3 to 4 million today despite the correction. On the other hand, a million left in a Dow or S&P fund would be worth roughly 1.5 million. And cash? lol

            Jan 18, 2016 18:17 PM

            Interesting point Matthew

            Jan 18, 2016 18:50 PM

            That’s pretty funny. What part of 1.5yrs don’t you understand?
            I rode the real estate bubble with safe leverage and a 9% yield sold 2009….
            I had gold and made a shit load in silver….
            And you have been in gold stocks the last 4 years? How that go?
            A bull market where?? LOL Here’s the USD kicking the shit out of gold for some time

            http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24USD&p=D&yr=15&mn=0&dy=0&id=p26333836582&listNum=1&a=441458902

            And look how well shares did!!
            http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24XAU&p=D&yr=15&mn=0&dy=0&id=p59394117228&listNum=1&a=441460923

            And here’s my RE against your gold. And just add 70% leverage with that run.
            http://ritholtz.com/2013/05/which-is-a-better-inflation-hedge-gold-or-houses/

            Don’t bother replying I’m done here wacko fact o

            Jan 19, 2016 19:23 AM

            Confused people always resort to name-calling. Did you sell the top in stocks or still buying?

            “Don’t bother replying.” Lol

      Jan 18, 2016 18:58 AM

      Well, that was sure interesting……..

        Jan 18, 2016 18:08 PM

        Not really interesting because it will probably go nowhere. Zero Hedge is looking to make a big name for itself by preaching to the choir by what I refer to as “not really showing the whole movie”‘

          Jan 18, 2016 18:14 PM

          Owl, you been reading to many novels…………lol

            Jan 18, 2016 18:21 PM

            Have you sever read any Tom Robbins?

            Jan 19, 2016 19:36 AM

            STILL LIFE WITH WOODPECKERS……..looks like a good one to read…… 🙂

          Jan 18, 2016 18:59 PM

          Zero Hedge sells second hand news like most AL

            Jan 18, 2016 18:33 PM

            And Zero Hedge also is the best at investigative reporting, Bill.

            Jan 18, 2016 18:49 PM

            Beg to differ…The best reporting never gets to the public…

            AND GO BEAR MARKET in commodities! and all else.. Its like a yard sale everything must go! If oyue a junior fan the CDNX is down to 485 from 2400…
            Actually Ive been 85% Cash for 1.5 years and to buy in today would be the equiv of $450k so cash was a good call. Its like being short without the risk…..little further to go I think….
            LIKE I SAID, BE CAREFUL .

            Jan 18, 2016 18:18 PM

            Thanks Bill

            Jan 18, 2016 18:36 PM

            On January 18, 2016 at 3:49 pm,
            Bill says:
            Beg to differ…The best reporting never gets to the public…

            No kidding…!

    Jan 18, 2016 18:05 PM

    Accountability or lack of it is seen in all walks of life. Here in the UK our foods standards agency is pressing to have all restaurants and takeaways calibrated from 0-5. While 0 demands instants closure 5 denotes excellent hygiene. At present this requirement is only legislated for in Wales. Naturally elsewhere all food providers given 3 or more proudly exhibit their rating whilst all the rest keep stum.

    Jan 18, 2016 18:05 PM

    Thanks for the information. ZH has been a good source of information as well as rumour mill. They have had many false information. I am short high yield bond at present so I am interest not have FED screw up my trade. I know bank subprime loans were suspended of mark to mark accounting rules at beginning and later simply bought by FED through QE. If you are short, it is hard to compete with FED. Thanks again.

    Jan 18, 2016 18:24 PM

    Bank of Canada says keep stacking silver!

    http://sgtreport.com/page/2/

      Jan 18, 2016 18:49 PM

      Canada can cut interest rates a quarter point if rates decline further in the market:

      http://youtu.be/2fwwT5jp-dA:

      Jan 18, 2016 18:18 PM

      The bank is not stacking silver even though they legally can do so.

    Jan 18, 2016 18:31 PM

    says should be in inverted commas!

      Jan 18, 2016 18:06 PM

      Andy, zerohedge…….says…….UK Parliament wants to ban TRUMP, from entering .
      If, Donald becomes Pres., will the Queen have him over for tea.? …and what kind of exchange gift will they trade. The Obama film library is running short of old movies.

        Jan 18, 2016 18:11 PM

        Never bothered reading that one Muskovite

    Jan 18, 2016 18:09 PM

    There are countries where reporting false news is actually a crime and it is sometimes related to cases involving the holocaust. Some people ought to be cautious about their legislative activities. The legal monsters they create may come back to bite them.

      Jan 18, 2016 18:22 PM

      Scary thoughts Steven#

    Jan 18, 2016 18:52 PM
    Jan 18, 2016 18:54 PM
    Jan 18, 2016 18:02 PM

    Just saw Jim Rickards podcast.
    Invest in his theory, at your own peril. ( shill )
    Rickards and Armstrong are some cunning dudes!
    They should do the Jim (sheeple) Armstrong show. LOL

      Jan 18, 2016 18:08 PM

      What’s his theory?

        Jan 18, 2016 18:14 PM

        The currency war lie. He misrepresents what it actually is. He hides the facts.
        Too much to write about for me to give full comment.

          Jan 18, 2016 18:19 PM

          Thanks.

    Jan 18, 2016 18:07 PM

    CDNX (TSX Venture):

    http://schrts.co/rLFnVP

    Jan 18, 2016 18:18 PM

    Silver closed the week at its 8/26 low. The battle for direction continues…

    http://schrts.co/5OT0bo

    Jan 18, 2016 18:47 PM
      Jan 18, 2016 18:29 PM

      I talked about the horizontal tyranny and posted the following article here about five years ago. It’s worth the time.

      James Madison and the Dilemmas of Democracy

      http://www.city-journal.org/2011/21_1_urb-james-madison.html

      Beyond showing him that majority rule could turn tyrannical, Madison’s early political career proved an education in popular government’s shortcomings at all levels: individual, state, and national. In his bid for reelection to the assembly in 1777, he wouldn’t lay out the usual free drinks and food that voters expected, thinking the custom “inconsistent with the purity of moral and republican principles” that he was “anxious to promote by his example,” he later wrote. The voters, short on the requisite republican purity, viewed his behavior “as the effect of pride or parsimony” and voted him down as a prig. Both as a professional politician and as the framer of a government, he never again made the mistake of expecting ordinary people to be prodigies of virtue.”

    Jan 18, 2016 18:35 PM

    People are providing false info on this site and not showing credible sources at times. A recent example is a mention of Obama purchasing a retirement mansion in Dubai which is completely false.
    An accounting firm will always follow accounting standards even if it means losing the client as the alternative risk is much worse.

    Jan 18, 2016 18:38 PM

    On a very sad note one of the Eagles (one of my favourite bands) has died:
    Glenn Frey, founding member and guitarist for the Eagles, died on Monday at 67 years old, ET confirms.

    In a statement posted to the musician’s website, Frey’s family announced that he “succumbed to complications from rheumatoid arthritis, acute ulcerative colitis and pneumonia.”

    Dan
    Jan 18, 2016 18:56 PM

    Can’t speak for accountants, but I’ve seen stuff first hand at the executive level in the brokerage industry that is truly rigged, fake and crooked as far as the eye can see.

    The kind of garbage that is done to generate fees/commissions by piling leverage on top of leverage fully convinces me that the SPX is heading below the 2009 lows.

    Jan 18, 2016 18:29 PM

    Dan,
    You are correct. The derivative game is over. The rob Peter to pay Paul deal has run it’s course, and it will soon be revealed in the numbers ( the falling numbers )

    Jan 18, 2016 18:04 PM

    NYA (NYSE Composite Index):

    http://schrts.co/dFr1Rg

    Jan 18, 2016 18:14 PM

    Silver needs to get out of this fork:

    http://schrts.co/ymhF1J

    Jan 19, 2016 19:02 AM

    Gwen Preston: Gold to Shine with the Market’s Decline!
    BY COLLIN KETTELL ON JANUARY 17, 2016

    http://palisaderadio.com/gwen-preston-gold-to-shine-with-the-markets-decline/

    Jan 19, 2016 19:05 AM

    Suncor changes strategy to acquire Canadian Oil Sands with $6.6bn friendly deal
    Cecilia Jamasmie | January 18, 2016

    http://www.mining.com/suncor-changes-strategy-to-acquire-canadian-oil-sands-with-6-6bn-friendly-deal/

    Jan 19, 2016 19:07 AM

    Goldcorp closes Timmins mine amid metals downturn
    Globe and Mail | January 17, 2016

    http://www.cbc.ca/news/canada/sudbury/goldcorp-procupine-dome-mine-closure-1.3405113

    Jan 19, 2016 19:17 AM

    Well, Big Al….. they did do that with the mortgages after they started to non -perform, didn’t they? Do you think maybe they learned something from that?
    Unless you think that they have so much character and are so principled they wouldn’t do this , you have to consider this to be a strong possibility of being true.

    Jan 19, 2016 19:19 AM

    MATHEW last one…
    I had too…… If you bought a commercial building in the US in yr 2000 for 3 mil$ with a 1 million down payment that paid 7-9% yield……Do the math buddy…
    Crash or not it is irrelevant…You wouldn’t be sitting obsessing about stats on gold.
    You have no understanding of business do you?
    Meanwhile I’m off to a $750,000 corp yr while Canada implodes….Ill take it..
    Gold is a joke in comparison

      Jan 19, 2016 19:02 PM

      Bill, different asset classes rise and fall at different time so no one is a joke. If gold is a joke, please answer me why did you buy gold. Don’t say gold make sense while you bought it since it defeats your assessment.

        Jan 22, 2016 22:39 AM

        Dragonite,
        I bought a lot of PMs 2000 as I knew there was a major crises brewing in the US.
        I warned family to buckle up 6 month before the housing bubble burst…They didn’t believe me and were living in cars for a while. The crises is behind us and although there are major issues around the world we are muddling through….
        GOLD IS NOW GUESSING…Oil as I said only less then a week ago was a buy very soon. Oil has real predictable supply / demand fundamentals you can track…Billions burn it in their combustion engines everyday unlike Gold (smoke and mirrors) don’t believe me? The experts (Gold pumpers) I spit on 1-2 years ago have been DEAD wrong and if you held shares any amount of time your teeth have been smashed in. (other then a few COs)
        I was going to give Al some good insights but blew it off ass their too many fools here.
        ie a Real opportunity was to buy CND beaten down Preferreds paying %5 DIV a year. There are up should recover 30-50% in the next year so it would be a tidy $200,000.00 profit IN SAFE PREDICTABLE COMPANIES…AND I get 5% to wait it out while banks pay F-all..
        Now if you like to dream and listen to busted clocks that may get it right one day Ive got one in the garage OR you can listen to Bob Moriarty..
        Al-thought gold can catch a bid Ill take the same prudent money…Mathew talks about Gold being up 17% against CRB…daaaa Did he make 17%? No point in pointing out exact bottoms and tops because YOU AINT getting them. Did he make trade on that??You cant even….who CARES.. One thing is for sure Ill pull down $700k this year so I could give a SH#T what people think…Was just trying to warn people 1.5 yrs ago about the bogus calls on gold and the CRB…look at some charts…
        http://stockcharts.com/h-sc/ui?s=PLG.TO&p=D&yr=1&mn=4&dy=0&id=p31314346514&listNum=1&a=420907867

    Jan 22, 2016 22:06 AM

    I was going to start my own website to teach people to think for themselves…Avoid investing Tunnel vision and snake oil salesman…