Reader Mail – 01/13/2013 To 01/19/2013

How much money do players get from the Superbowl? Also, Playoff Pay For Each Game. | The Richest Daily commented on NFL Players Are Underpaid For The Playoffs And Super Bowl.
[...] when you think that NFL players have short careers due to injuries, they are significantly underpaid for playoff games compared to their regular season games. Especially when you factor in the [...]

Esse commented on Gold Outperformed The S&P 500, 1995-2012.
The flat spot anomaly in 2008 is very unusual. This was right when it was announced that the trillions is debt would be created through inflation and given to bankers. The normal economic thing would be for the price to rise. But instead it suddenly stopped its previous growth. Some have said there were strange trades and transfers and large boats filled with gold moving across the seas. Some say this is when the last reserves at Fort Knox were dumped on the market to stabilize the price and prevent panic. What do you think caused the flattening in 2008 in gold price right at the major disclosure that massive inflation would occur?

Almost all futures prices crashed during 2008. People had to sell to make margin calls in other areas.

Suppose a hedge fund held a lot of gold, a lot of stocks, and leverage. The stock market crashed, leading to margin calls on the stock. They had to sell their gold futures to make the margin call on the stock.

There also is a "mean reversion" argument. Prior to 2008, gold had several good years in a row, so a "bad" year was needed to even things out. Notice that even in a "bad" year for gold, the performance is pretty good. If you hold gold for at least two years, your risk of getting a FRN-denominated negative return is practically zero.

Here's another argument in favor of market manipulation. In 2008, when the price of gold crashed, the "futures" price of gold crashed *BUT* many gold dealers had no inventory. If you wanted to buy actual coins, you had to wait or pay larger premiums to spot.

As Jon Corzine taught us, the futures market has default risk. The futures market and cash/bullion market are two separate things.

Here's another interesting story from 2008. A lot of farmers hedge their crops with short futures. In summer 2008, futures prices skyrocketed. This led to margin calls for farmers, who were then forced to close their futures position at the top of the market. By fall 2008, when the crop was delivered, prices tanked again. The farmers wound up selling low and buying high. Via market manipulation, banksters robbed the farmers. DON'T USE THE FUTURES MARKET!


Anonymous Coward commented on Don't Bother Meeting Headhunters In Person.
My first manager in the software "industry" said words to the effect of that recruitment consultants were scum and talking to him made his skin crawl.

They won't all be like that, but enough of them are to make it representative.


commented on HSBC Get A Slap On The Wrist.
The Justice System = The "JUST US" System

Anonymous Coward commented on Aaron Swartz Suicide - Was He Murdered?.
What happened to Aaron was shockingly bad. The prosecutor went way overboard. The legal system is obviously broken.

Somehow these thugs don't realize that a _human_ is at the end of their thuggery.

commented on Aaron Swartz Suicide - Was He Murdered?.

This is just the beginning. We ain't seen nutin' yet.

Anonymous Coward commented on NYC School Bus Strike.
There are two somewhat opposing trains of thought.

1) There should be limited or no government and less laws such that government cannot help bad companies and overpaid workers. This is called free market or anarcho capitalism.

2) Government has a valid role and that role should be actual interference in markets to help the people instead of of vested interests (companies wealthy enough to lobby).

The trouble with (1) is that there are a small number of people with vast wealth and if we moved to limited government they would yield all the power. So you would have to equalize the wealth and land at the same time.

It is through government that a small group of people with wealth concentrate their power. If you didn't have government, taxation, and regulation, it would be hard for insiders to use their influence to steal from everyone.

In a really free market, if your employer is abusive, you find a new job or start a new business. In the present, that doesn't happen, due to State restriction of the market.

Anonymous Coward commented on NYC School Bus Strike.

If everything was to start from scratch, what would we use as money?

Would it be gold and silver? Who holds most of the gold at the moment?

Or would we try to equalize matters and start up a new paper currency?

In the UK, Royalty owns a lot of land, farms and properties. One Duke owns a lot of prime London real estate.

The rich will still end up rich and they own a lot of property which they can rent out at whatever price they want.

What about all the "middle class" people with buy-to-let mortgages that can do no work and just rent out their second, third or fourth houses. The workers can save no money and all their money goes out in rent.

Even if you already own a lot of land, you won't be able to use it efficiently without help from the State. However, the tenants may have a more valid ownership claim than the landlord. In the present, large landowners receive direct and indirect State subsidies.

With free money, it probably would mean a return to gold and silver. Buy before the crash to preserve your savings. However, people would be free to use whatever they want as money.

The problem with a new paper currency is that the people who print it still get to steal via inflation.

Anonymous Coward commented on NYC School Bus Strike.

I found a website yesterday that stated that governments always say they can't do anything because of THE MARKETS.

The very next day Nick "student loans" Clegg said they couldn't do such and such, because companies only invest in the UK because of its membership of the European Union. So if Cleggy and Cameron didn't anything presumably a whole load of companies would up sticks and leave the UK along with their hoards of cash.

Well anyway the UK is going downhill. No jobs. North sea oil running out. No manufacturing anymore. Just fraud from the City of London.

The website pointed out THE MARKET is the same as the rich and Goldman Sachs.

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