Hello out there! I am so sorry for the lack of posting this week. Things have been hectic as I have been finishing the living room. With work, dinner, and projects it is hard to put something together, especially with how wild things have been. Tonight I am pointing you towards and old post of mine (from October 25th, 2007 almost a year ago today) as I think it holds some useful forward thinking. Also I asking for ideas on a perplexing situation that I have no idea about.
Spot Price of Metals vs. Delivery Price
There is something strange going on with the price of many precious metals based on lease rates and other metrics. The spot prices are depressed, but try and get physical delivery anywhere near that price and there is a serious disconnect. Tim Iacono over at The Mess That Greenspan Made, a far, far smarter voice on these matters than I, seems confused as well. Here is his take on the weird action in Silver:
Anyone have any ideas? I have seen plenty of thoughts out there saying that the paper market is on the verge of collapse. I am not so well schooled on futures and delivery contracts to know what that means exactly. Perhaps someone that reads here can shed some light? Have at it!
An Oldie But Goodie
Last year at about this time I had penned an article about what would have to happen to have a consumer led recession. Here is the link:
It was my argument that credit would have to be absolutely kept away from the consumer before any spending cuts would be seen. I figured that a credit crunch fueled by massive bank losses may do just that as easy credit for poor borrowers may come to an end. I must be Nostradamus!
Seriously, what I mean by bringing up this old piece is that even I could see the storm clouds coming. Hank Pauslon could not. Ben Bernanke could not. Bill Gross could not. There are many other experts that could not. I could. If you are reading this blog, you probably did as well. What does that mean for the proposed solutions by people that never saw any of this coming? I leave that to you the reader to figure out.
I can guarantee a rock blog tomorrow night and I have bought insurance from AIG to make sure I am covered. Wait, uh oh......
No, I will be posting tomorrow no matter what. Leave film, book, or music ideas in the comments.
Have a good night.