{"id":11989,"date":"2012-03-02T09:07:23","date_gmt":"2012-03-02T14:07:23","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=11989"},"modified":"2012-03-02T09:24:32","modified_gmt":"2012-03-02T14:24:32","slug":"heres-why-gold-went-down-heres-whom-to-believe-on-cnbc","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=11989","title":{"rendered":"Here’s why gold went down. Here’s whom to believe on CNBC"},"content":{"rendered":"

Remember the big drop in gold a couple of days ago. I asked readers for an explanation. Here’s one from Buddy:<\/p>\n

I was lucky enough to have Jim Sinclair as a broker in the 70s. Here is his explanation about what happened yesterday.<\/p>\n

“The power behind the equity markets right now is liquidity and everybody knows it. It’s not improving earnings and it’s clearly not a broad globally improving economy, but rather improving liquidity.<\/p>\n

If, in fact, what Bernanke attempted to tell the investment world today, that QE may not be necessary because of a modest improvement in the statistics of unemployment, if that was truly to be believed, then the stock market should have been off 800 points while gold was gold was down $100. Because the same thing moving the stock market is what’s moving the metals and that is pure liquidity.<\/p>\n

“Let’s go by the intervention that started out in the morning….<\/p>\n

“First you intervene via the mouth. Now, what happened over in Europe? The ECB made $712.4 billion in low interest loans to the member banks. This is the second round of massive credit infusions that has been credited with the easing of the eurozone debt crisis.<\/p>\n

So that is quantitative easing and we know the money that’s been coming into the ECB has been coming in from two places. It’s been coming in from the IMF and from swaps done by the US Federal Reserve.<\/p>\n

(This money flows, in order, through these entities) Federal Reserve (to the) IMF, IMF (to the) ECB, ECB (to the) member banks. (This is) pure QE on a global scale.<\/p>\n

Now at the same time this headline is being run, an interview with the Federal Reserve Chairman, Bernanke, states that `Due to the modest improvement in housing, it is possible that our reliance on QE may not be as necessary.’ Immediately that takes gold off $30, but that $30 was intervention if I’ve ever seen it.<\/p>\n

The next step (in the intervention) because we are back at recovery highs (during live trading), your algorithms are all looking for a reason to sell. (Action) tips off the algorithms and down it (gold) goes. It is an absolute contradiction in terms that the equity market could turn in a ho-hum day of minus 50 and gold be down close to $100 today.<\/p>\n

How many listeners have even seen the $712.4 billion of low interest loans that went from the ECB to the member banks today? It’s there, but you are going to have to look real hard to find it.<\/p>\n

Today does qualify as one of the biggest injections of liquidity into the system in the history of the system. Today was a cover-up by the US Federal Reserve and by the mainstream media of one of the largest injections of liquidity into the system that has ever occurred.”<\/p>\n

In other words, our expert doesn’t know either. Fortunately, gold bounced back a little yesterday. and my buying a little gold (SGOL) on the dip is up a few shekels. I’m not a genius, yet.<\/p>\n

How can anyone believe anything on BubbleVision?<\/strong><\/span> Look at this screen from yesterday morning:<\/p>\n

\"\"<\/a><\/p>\n

This nice lady, Adrianne Shapira,\u00a0 is a retail analyst at Goldman Sachs. Here she is being portrayed as some sort of expert who can tell the poor CNBC viewers which retail stocks they should buy. But the only ones she’s pushing are those that pay Goldman Sachs money for advice, investment banking, whatever. Talk about conflict of interest. This is blatant.<\/p>\n

Why does CNBC go along with this disservice to their poor viewers? Here are my theories:<\/p>\n

1. They think that the screen will warn their viewers that what they’re watching is blatant BS.<\/p>\n

2. They’re short of people who’ll agree to go on CNBC. After all, CNBC doesn’t pay any of the interviewees.<\/p>\n

There are people worth watching on CNBC — e.g. Warren Buffett, because he’s clever and funny. But even Buffett plugs the stocks he likes (and owns).<\/p>\n

Maybe the moral is simple: there’s no one you can trust. Everyone is pushing their own agenda, or their own investments, including me.<\/p>\n

We hope if you buy what we like, what we own will go up. Heck, it’s better than praying.<\/p>\n

Gold and old age…<\/strong><\/span>
\nArthur is 90 years old. He’s played golf every day since his retirement 25 years ago.<\/p>\n

One day he arrives home looking downcast.<\/p>\n

“That’s it,” he tells his wife, “I’m giving up golf. My eyesight has gotten so bad that once I’ve hit the ball I can’t see where it went.”<\/p>\n

His wife sympathizes and makes him a cup of tea. As they sit down she says, “Why don’t you take my brother with you and give it one more try.”<\/p>\n

“That’s no good” sighs Arthur, “your brother’s a hundred and three. He can’t help.”<\/p>\n

“He may be a hundred and three,” says the wife, “but his eyesight is perfect.”<\/p>\n

So the next day Arthur heads off to the golf course with his brother-in-law.<\/p>\n

He tees up, takes an almighty swing and squints down the fairway.<\/p>\n

He turns to the brother-in-law. “Did you see the ball?”<\/p>\n

“Of course I did!” replied the brother-in-law. “I have perfect eyesight.”<\/p>\n

“Where did it go?” says Arthur.<\/p>\n

“I don’t remember.”
\n<\/a><\/strong><\/p>\n

\"\"<\/a>
\n<\/strong><\/p>\n

Harry Newton who made it to the west coast with Rosie, our 9-month old Havanese, sitting in her cage (oops, carrying case) under the seat in front of Susan. Contrary to Susan’s expectations (aka fears), Rosie uttered not a squeak the entire 6-hour flight. That’s behavior I can understand. Anticipating major problems (it was Rosei’s first flight), Susan hadn’t fed poor Rosie for several millennium. I figure Rosie had died of starvation and dehydration and gone to Heaven. JetBlue has something called a Pet Relief Area at its Kennedy Aiport terminal. This is a stunning, customer-friendly benefit. And free, too.<\/p>\n

\"\"<\/a><\/p>\n

You’ll notice JetBlue superb attention to detail, including the fire plugs that are “not in service.” Susan and I tried to coax some action out of Rosie by walking her for 20 minutes. This produced nothing, except a 20 minute trip to the bathrooms for Susan and myself, where we scraped the multitude of matured dog shit off the soles of our shoes. That was not exactly the perfect way to begin a “pleasure” trip.<\/p>\n

I was fortunate to sit next to a woman with an 8-month old hyper active kid, who needed his diapers changed every 13 minutes. It was JetBlue’s onboard version of their Pet Relief Area. The woman sported the largest wedding ring I’ve ever seen, a super expensive watch and large breasts. She spent the entire 6-hour trip reading one copy of US magazine and filing her nails with the longest emory board I’ve ever seen. She was clearly an intellectual.<\/p>\n

Rosie still hasn’t poohed. I conclude that if dogs aren’t fed, there’s nothing for them to pooh. Finally, we fed her last night. We’re hoping for some action this morning.<\/p>\n

Traveling is fun.<\/p>\n

\n","protected":false},"excerpt":{"rendered":"

Remember the big drop in gold a couple of days ago. I asked readers for an explanation. Here’s one from Buddy: I was lucky enough to have Jim Sinclair as a broker in the 70s. Here is his explanation about what happened yesterday. “The power behind the equity markets right now is liquidity and everybody […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11989","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/11989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11989"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/11989\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}