The Credit Crisis is Just Another Way of Describing a Loss of Trust

[TheEditorialist]

I sold DSX this morning.

This market doesn't hand out doubles everyday.

When you get one, take it.

Especially when the position is 12 months old (long term capital gain)

[jimmyjustus]

Speculation is killing the economy by driving up the cost of goods. ergo, squeezing the cash flow of we commoners.

[DaddyBlackwood]

Hmm...I understood that explaination. Great video and food for thought. Subscribed.

[Teller3448]

Why dont we just require (by law) ALL commodity futures buyers to take delivery?

This would eliminate the speculation and drive down the price of almost everything.

[TheEditorialist]

"Why dont we just require (by law) ALL commodity futures buyers to take delivery?"

******

Would all futures contract sellers be forced to make delivery?

I personally know speculators who short the contracts.

Besides all contracts are settled by firms (usually commercial buyers) taking delivery. For every contract bought there is a contract sold and vice versa.

Supply and demand is at the heart of the market. Speculation is represented only in the extremes swings in price, not in the 365 dma.

[Teller3448]

The ability to short futures is not more important than the health of the economy.

The 60 minutes article on the subject a few weeks ago pointed out that 60-70% of the oil futures market is pure speculation. Buyers who never have any intention of taking delivery. This speculation is very much a part of demand.

Remove that from the market and the price of oil would soon fall to lows favorable to economic recovery.

[TheEditorialist]

"The ability to short futures is not more important than the health of the economy. "

***

The ability to short futures lowers prices and thus, arguably helps the economy.

[Domibond007]

Teller3448: You are wrong and 60 was biased.. What we need is more especulator not less, that way the market can fight the GoldmanSachs front running scheme with USO,UNG and all those ETFs. When the government took out the Onions and garlic from the futures market, the volatility of those products jumps more than 400%.. In the 1970's there was no futures market in oil and yet the Oil went straight to $101,75 by 1980. The FED also is the Biggest player by killing the dollar and creating inflation

[blehert]

"On the day when we can fully trust each other, there will be peace on Earth." L. Ron Hubbard, from _A New Slant on Life_

[itachi705]

If Peter Schiff is right, and the USD eventually becomes worthless, I don't know if any foreign markets will want to "trust" a U.S. based corporation any time soon.

[vidshooter]

Good stuff, please keep it coming!

Recently I looked into buying several flexitank containers of vegetable oil to use for biodiesel production here in the northeast. I posted my buy offer on several global web portals. I received over 100 responses, and 99% turned out to be fraudulent including some very elaborate attempted scams. This along with the piracy scare has got to be hurting international shipping as well.

[Pleblian]

Hmm.. In my humble opinion

At this point, banks will never be held culpable, it will only only amplify future scrutiny, especially when there's a impending second wave mortgage foreclosures. No?

[jchahine]

Q.:

why aren't banks lending to each other after the 700B bailout?

A.:

because the bankers know how much of a douchebag the other bankers are...

[rseveran]

Makes a lot of sense.

I invested in GNK and DRYS from '06 to '07...it was a good ride. Some oil tankers too...big dividends.

This is just one of many black swan events.

Yep, Santelli is good...not a pre-programmed robot.

You'd think a severe lack of trust would be a gigantic bullish factor for gold, and other anti-fiat trades, sometime soon. If that fire gets going again, look out.

[gramig0]

Great vid...thank you!

[TheEditorialist]

I forgot to mention that I think this loss of confidence in Letter of Credit is a black swan event that truly no one anticipated.

International shipping has seized up. And I can guarantee that the masters of the universe didn't want that to happen.

If they had anticipated it, they would've done something to prevent it.

These usually routine letters are the Achilles Heel of the global economy.

The lack of international trade that results will bring about a global, economic disaster.

[rseveran]

Just wondering, how can you be sure the masters of the universe want to avoid a global economic disaster?

I think some things just have a destiny, things that basically have to happen, based on past events.

[TheEditorialist]

Sorry guys.

I was asked to post a video response to an econ video and this is my only youTube channel...

I'll develop another channel soon devoted to publishing video blogs pertaining to finance and the economy and you won't have to sift through these when you're hunting for my typical stuff.

[george4title]

thanks for the vid - you should respond to my vid