The Great Depression Online




The Great Depression Online Archives...

Great Depression Online issues are archived below:

Big News At The GDO - February 25, 2011 - Peering through a prism of free market principles, limited government, and individual liberty, the Economic Prism E-Newsletter brings clarity to the muddy waters of economic policy…and targets investment opportunities for acquiring considerable wealth.

"I Love It" - February 22, 2011 - Get in while the getting is good.  But don’t stay in too long.  For this is not a real economic boom…it won’t end well for most.

Oil Price Dynamics - February 18, 2011 - We’ll need more oil, but we won’t be able to get it.  In other words, demand will increase but supply won’t.  This should make for some interesting oil price dynamics.

Do You See What's Coming - February 15, 2011 - Do you see what’s coming?  Before long the entire budget deficit will represent the amount owed just to service existing debt.

Meredith Whitney's Critics Are Conmen - February 11, 2011 - This is not going to turn out well for the little guys who are taken in by this con and hold onto their municipal bonds. Especially since Meredith Whitney is right.

When the Inflation Cat Gets Out of the Hat - February 08, 2011 - The experience of the 1970s showed that when the inflation cat gets out of the hat, getting it under control is very difficult.  It takes extreme measures, and immovable conviction, in the face of overbearing political opposition.

Salad Days of Revolution turn to Rot - February 04, 2011 - You can see it…and certainly smell it…  In short order, the salad days of revolution have turned to rot.

Australian Floods Cause Drought in the Coal Market - February 01, 2011 - Australia accounts for almost two-thirds of global coking coal production.  Much of it comes from Queensland, where an area the size of France and Germany combined is underwater.

Do You Feel the Magic? - January 28, 2011 - The irrational exuberance of the late 90’s, the dot com crackup, the housing bust…the Federal Reserve’s finger prints are on all of it.  Do you feel the magic?

Stepping In Front of a Stampeding Herd - January 25, 2011 - Betting against this is like stepping in front of a stampeding herd.  It’s probably best to stay out of the way, let the herd pass, and then reevaluate the opportunities at that time.

Something More - January 21, 2011 - Most delusions come to pass with a pounding.  Thus the delusion of debt based consumption providing endless wealth will ultimately be pounded out of the people too.  After that, they’ll want something more.

For Sale: European Autonomy - January 18, 2011 - So now, what we have is an implicit Chinese bailout of Spain.  In other words, European autonomy’s for sale.

Going the Way of the World - January 14, 2011 - Overtime, through policies of inflation, a nation becomes indebted to bankers and approaches a collective default.  However, a good central bank will always try to inflate the debts away.

Reflating the Consumption Debt Bubble - January 11, 2011 - But that’s what Bernanke wants…he wants consumers and businesses to boost spending.  He wants an artificial demand that would otherwise be nonexistent.  In other words, he wants to reflate the consumption debt bubble.

The Consequences of Default - January 07, 2011 - What a marvelous time to be alive.  Smart phones keep getting smarter, entertainment keeps getting cheaper, and the government keeps spending money it doesn’t have to bring prosperity to the people.  We stand in awe of it all.

A Question of Character - January 04, 2011 - What Bernanke doesn’t grasp is being “one hundred percent” confident he can control inflation and having the will to go through with it – particularly when unemployment’s near 10-percent – are two entirely different things.

Profiting from Policy - December 31, 2010 - When your government employs policies of inflation to steal your savings you are morally obligated to protect yourself every way you can.

2011: The Year of the Big Energy Breakthrough - December 28, 2010 - Right now, in cities across the globe, brilliant minds at the fringe of scientific propriety are but one experiment away from the big energy breakthrough humanity’s been waiting more than 40-years for.

The Sick Lion - December 24, 2010 - We’ll keep it brief today.  Tomorrow’s Christmas, after all.  Only fanatics and neurotic give a rip about markets at the moment.

"Elvis Has Left the Building" - December 21, 2010 - Just when you think you’ve got it nailed, come to find out, “Elvis has left the building.”

Medieval Mathematics from Pisa Italy - December 17, 2010 - Leonardo Fibonacci da Pisa, born in the late twelfth century, was the son of a prominent merchant and city official.

The Great Market Caper - December 14, 2010 - Markets are embarking on a great caper.  The first stop on this new adventure is inflation.

A Repeat Opportunity to Consider - December 10, 2010 - Now it looks like a repeat opportunity’s been set.  Since June 1st this ETF is up 30 percent.  With dwindling crop yields and burgeoning money supply growth this could easily dwarf the price increases of 2007-08.

Faster than a New York Minute - December 07, 2010 - No doubt, when the debt upon debt pyramid of paper money begins cascading down in earnest, the accumulated wealth of three generations will be vaporized faster than a New York minute.

What's Wrong With the Jobs Market? - December 03, 2010 - It isn’t complicated.  The State is living parasitically off our living standards and hopes for the future.  It must die, if we are to live well again.

More Collapsed than a Habsburg's Jaw - November 30, 2010 - Perhaps there are some lessons from the 18th century to be relearned from Spain’s century long decline.  If so, the euro’s future is more collapsed than a Habsburg’s jaw.

Somewhere Between Heaven and Hell - November 26, 2010 - Here at the GDO we’re thankful for toys too…and much more.  We’re thankful for what we’ve been given and, more importantly, for what has been taken away.

When to Sell Gold - November 23, 2010 - What this means is gold’s recent drop is well within the parameters of the bull market trend.  So how will you know when it’s time to sell.

Forces More Powerful than the Federal Reserve - November 19, 2010 - Borrowers are counting on the Federal Reserve to keep interest rates down.  But could it be there are forces at work more powerful than the Federal Reserve?

Luck o' the Irish - November 16, 2010 - The Luck o’ the Irish is a recognized, yet ironic phrase.  For the Irish have been a remarkably unlucky people.  Famine, oppression, emigration, civil war, religious conflict…you name it.  The Irish have lived it.

Outer Space Economics - November 12, 2010 - But the price changes and booms and busts would all orbit around the sun…a solid, unchanging, supply of money.  They would not spin uncontrollably into the outer space galaxies.

The Business of Inflation - November 09, 2010 - “We’re not in the business of trying to create inflation,” Bernanke said.  No doubt, he had his fingers crossed behind his back.

Why Risk It All? - November 05, 2010 - Just talking about cutting Social Security is political suicide, after all.  Why risk it all when you can just inflate?

What Happens When QE2 Doesn't Work - November 02, 2010 - When QE2 doesn’t work, they’ll try QE3, QE4…  Sometime between QE4 and QE5 – when Bernanke drops money from helicopters – the world’s monetary system will meltdown.

Depression Within a Depression - October 29, 2010 - The mainstream media’s popular narrative about the causes and cure for the Great Depression invariably start with the storyline that the stock market crash caused the Great Depression.

Coming to a Market Near You - October 26, 2010 - With financial markets for farm products hitting record highs, you can count on actual food prices to follow.  General Mills has already sounded the alarm.  Remember where you heard it first.  Food price inflation is coming to a market near you.

Being Reduced to Third World Status - October 22, 2010 - With a Federal Reserve like this, and a Senate like that, America’s being reduced to third world status faster than a three strikes convict gets thrown back in the calaboose.

Starting a Trade War with China - October 19, 2010 - Maybe so…but we’re confident the Senate will start a trade war with China just to find out for good.

Give Moonbeam the Boot - October 15, 2010 - Yes, like all politicians, Meg Whitman’s a liar.  On top of that, she has many of the above shortcomings.  Still, Moonbean takes the cake.

Egging Bernanke On - October 12, 2010 - Quite frankly the $1 trillion is already pure lunacy.  Yet everyone wants more.  Policy makers are practically egging Bernanke on… “We want QE2!,” they shout.

No Way Out - October 08, 2010 - The trillions of currency units being printed all over the world will definitely ignite more bubbles, which should present fantastic speculative opportunities.

U.S. Government Bailout - October 05, 2010 - Aside from bailing out the big banks TARP also served an even greater, less reported, purpose.  It served to bailout, if only temporarily, the U.S. Government.

What Could Possibly Go Wrong? - October 01, 2010 - Don’t worry about a thing.  With the experts on the case…what could possibly go wrong?

The Possibilities of Monetary Mischief - September 28, 2010 - So who’s right?  They may all be.  That’s the sinister irony...  With all the monetary mischief going on, anything’s possible.

Betting on the Federal Reserve - September 24, 2010 - Ultimately, Gross’ bet comes down to a bet that the Federal Reserve will keep printing money until prices go up.

Teaching the World a Lesson - September 21, 2010 - As Federal Reserve Chairman, he succeeded in tempting two generations of American’s to throw-out the proven, traditional, means of managing their finances in exchange for an epic debt bubble.

Confessions of a Cubicle Man Revisited - September 17, 2010 - So pour yourself a hot cup of coffee, pull up a chair, and revisit with us these Confessions of a Cubicle Man.

Opportunities Too Big To Resist - September 14, 2010 - The opportunity for Obama was too big to resists.  And his ideology is too full of conceit to do otherwise.  If this keeps up, we’ll all be using E.B.T. cards for dinner.

When Everyman Was Donald Trump - September 10, 2010 - Everyman was Donald Trump.  And those who weren’t were just dorks and squares.  Didn’t they understand how simple it was to attain a life of wealth and luxury?

Making Sure "It" Doesn't Happen Here - September 07, 2010 - The man is a lunatic, no doubt.  So now that deflation is grasping a strangle hold around the economy’s neck, we rue to see what he does about it.

The Panic of 2010? - September 03, 2010 - Could there be a Panic of 2010?  We’re confident we’ll have an answer by Halloween.  Tis the season…fall is upon us.

Second Stimulus and the Fantastic Cat's Meow - August 31, 2010 - Yet somehow this notion seems a little too fantastic.  And even if it were true, what good would more stimulus do anyway?  Aside from a boatload of signs…not much.

Hell Bent on Giving It Good and Hard - August 27, 2010 - Who knows what Bernanke’s got in his bag of tricks?  But, regardless, he’s hell bent on giving it to us good and hard.

Straight from the Horse Whisperer's Mouth - August 24, 2010 - We’re not quite sure what exactly horse whispering is, but our guess, if it had any wit, when the time came, the horse leaned over to Bernanke and whispered… “Sell.”

Sitting on the World's Largest Stockpile of U.S. Treasuries - August 20, 2010 - Thanks to its huge trade surplus, Beijing [China’s central government] is sitting on the world’s largest stockpile of U.S. Treasuries

The Hindenburg Omen and the Looming Market Crash - August 17, 2010 - So, for what it’s worth, the occurrence of the Hindenburg Omen last Thursday foretells a highly likely coincidence that a market crash will occur in the near future.

DOW 5000 - August 13, 2010 - We’ve been expecting a broad and protracted market selloff for over a year now.  Something that would bring the DOW down to the 5000 neighborhood.

Getting It Just Right - August 10, 2010 - With a little persistence and dogged determination we’re confident they’ll eventually get it right and hit their inflation target…but only for a moment as prices rocket past on their way to the moon.

The Traits of Success - August 06, 2010 - The sardines, of course, are long gone.  For as Ed Ricketts, operator of the Pacific Biological Laboratories from 1928 to 1948 concluded, following his investigation of where the sardines had gone, “They’re in the cans.”

The Wrath of Excess Liquidity - August 03, 2010 - In this grand paradox, the freshness of the excess water that’s keeping the farmland alive is the source of the salt that’s killing it.

Pouring Lighter Fluid on the Camp Fire - July 30, 2010 - The lighter fluids already been poured on the camp fire.  Just give it a year or two…an errant spark’s bound to ignite a fire storm.

What Depressions Are For - July 27, 2010 - In the larger scheme of things, this is exactly what depressions are for.  To clear out the swindlers and crooks…to boot them to the curb…and to take back control of the public finances.

Why You Should Sell Your Stocks - July 23, 2010 - Sure, there are times when you should buy stocks.  But ‘through no fault of your own,’ this is not one of those times.

Government Mules - July 20, 2010 - What if the modern version of society is really nothing more than a sleight of hand designed to fool the masses into becoming little more than government mules, allowed their simple pleasures in exchange for providing the muscle and the money needed to feed the beast?

Extraordinary Popular Delusions - July 16, 2010 - Like Elvis Presley – or the U.S. Constitution – U.S. consumer capitalism and the magic of the Keynesian fiscal elixir are finished.  That they ever became such extraordinary popular delusions will be one of history’s enduring contemplations.

Where Are We Headed - July 13, 2010 - The stock market – and the economy – will most certainly get clobbered again before the next secular bull market commences.  The debt will have to be crushed out of it.

Incredible Economic Destruction - July 09, 2010 - And that’s just the beginning…next year, taxes go up.  Have you ever sailed upwind in a lightning storm?  The destruction to the economy shall be incredible.

Krugman's Way - July 06, 2010 - Thus if Krugman gets his way there won’t just be a Long Depression or a Great Depression, there will be a hyperinflationary conflagration of the world’s paper money.

Celebrating Independence Day - July 02, 2010 - It really doesn’t matter one way or the other if we resist our leaders as they bankrupt the nation under the pretense of saving the economy.  For it was destine to happen…and who are we to stand in the way?

Give Halfwits a Chance - June 29, 2010 - But wouldn’t this mean turning control of the price of money over from a Princeton Professor to the millions of halfwits bumbling about their daily business?

One of Life's Tipping Points - June 25, 2010 - We currently sit at one of life’s tipping points…where the apex for debt based economic growth has been surpassed.

Credit Market Russian Roulette - June 22, 2010 - Rolling debt with short-term maturities over and over into the future to meet long-term obligations is like a high stakes game of Russian roulette…you may get away with it for a while, but eventually you blow your head off.

The Gentleman Swindler - June 18, 2010 - Ben Bernanke’s a swindler of the better sort, perhaps, for he goes about his business in a gentlemanly way.  But nonetheless he’s a true swindler.

A Prescription for Disaster - June 15, 2010 - For every dawn there is dusk.  For every endpoint there is a starting point.  So what was the Keynesian starting point that sent us down this road to crisis?

Something to Smirk About - June 11, 2010 - With the dismal unemployment report, tarballs floating up on Pensacola beaches, Joran van der Sloot, Barney Frank, and the European debt crackup, there’s hardly been a thing to smirk about.

Exceptions to the Rule - June 08, 2010 - During a depression, money becomes scarce.  In other words, it becomes more valuable.  Goods and assets – including gold – become cheaper as money becoming more valuable.  But there are always exceptions to the rule.

Preparing for What's Next - June 04, 2010 - The way to play the situation is to follow our constant advice to have a heavier-than-normal concentration of cash in your portfolio and look to use corrections to steadily build positions in gold and the high-quality gold stocks.

Past the Point of No Return - June 01, 2010 - Yes, it is in fact a new era.  But here is not somewhere you’d want to be.  For the die is cast.  We’re past the point of no return.

How the Stock Market Works - May 28, 2010 - The stock market works in seemingly predictable ways.  It goes up.  Then it goes down.  After that, it goes down then it goes up.

Wealth Protection of Proxy Bearer Bonds - May 25, 2010 - Collectable stamps, or other proxy bearer bonds, could serve as a prudent wealth protection strategy in the years ahead.

How Governments Impoverish their Citizenry - May 21, 2010 - One day, perhaps soon, if the U.S. government keeps it up, their mischief will be splattered across El Norte too.

One For The Ages - May 18, 2010 - Our recommendation is to step aside, and awe at the aesthetic form of it…the stock market’s swan dive shall be both eloquent and historic.  It’ll be one for the ages.

Three Mile Island for U.S. Oil - May 14, 2010 - In the early morning hours of March 28, 1979, something went amiss at the Three Mile Island Nuclear Generating Station.

Debt Kills - May 11, 2010 - The phrase ‘debt kills,’ is the sharpest, most accurate, assessment you’ll hear right now of the world around you.

A Warning Shot from China - May 07, 2010 - Based on this latest warning shot from China, this week’s stock market selloff may only be just the beginning.

Roaring and Raging in Europe - May 04, 2010 - Sordid politicians, brain dead economists, and self indulgent labor unions are roaring and raging in Europe.  They won’t stop even once they’ve squeezed every last euro from the economy.

Why Are Silver Sales Soaring? - April 30, 2010 - For this reason alone, squirreling away a little gold makes sense…even if you’re not an investor.  But what about gold’s younger step brother silver?

Burger Deflation - April 27, 2010 - Good grief.  If the depression keeps up, even getting a good burger will soon be hard to come by.  Regardless, the inflation vs. deflation battle is far from over.

The 'Strategic Default' Era - April 23, 2010 - You see, in the strategic default era, a spendthrift can live mortgage free and rent free for nearly 14 months without hearing a peep from the bank.

Nature: An Immodest Exemplar - April 20, 2010 - After all, you see, Goldman Sachs was just doing natures work: separating fools from their money.

You Can Almost Feel It - April 16, 2010 - So close your eyes, enlighten your senses, take deep breaths…bond yields are ready to rise, you can almost feel it.

"This is to Make an Ass of Me" - April 13, 2010 - The current cast has Mayor Antonio Villaraigosa in the role of Nick Bottom – the guy with the ass’s head.

When Soda Was a Nickel - April 09, 2010 - Only but a coot or a curmudgeon doesn’t like the proposition of getting something for nothing – especially when it’s guaranteed by the government.

Four More Years - April 06, 2010 - Regardless, over 8.4 million jobs vanished from the U.S. economy since December 2007.  At a rate of 162,000 per month, it’ll take over 4 years to get back to even.

The Little Guy Gets Snookered - April 02, 2010 - Of course, the expansion of the money supply starts with the Federal Reserve.  And the inflation it creates decreases the real value of debt.  The problem, though, is that the little guy gets snookered.

Dope Smokers to Bailout the Golden State - March 30, 2010 - This is what some folks call a conundrum.  And this is what’s prompted the latest delusion: that dope smokers can bailout the state.

Help!  I've Been Taxed and I Can't Get Up - March 26, 2010 - From the government’s perspective, it makes the printing of money a lucrative affair.

Do You See How It Works? - March 23, 2010 - Jim Costa, Dennis Cardoza, Allen Boyd, Suzanne Kosmas, Bart Gordon, John Bocciere, Dennis Kucinich, and Luis Gutierrez…for reasons unknown, between last Thursday and Friday, wimped from no to yes.

What Were They Thinking? - March 19, 2010 - No bubble expands for ever…eventually they always pop.  Only then will the ultimate consequences be realized.  Alas, one day historians will look back in awe and wonderment, and they will ask – What were they thinking?

Promises Upon Empty Promises - March 16, 2010 - When it comes down to it, foreign extension of credit amounts to purchases of promises upon empty promises.  Eventually they’ll come to their senses and cut off the Treasuries tab.

Entropy - Why the World as We Know It Is Dying - March 12, 2010 - How come the Treasury keeps throwing good taxpayer money after bad?  And, of course, how to profit from the answer to these questions?

The Stock Market was Duped - March 09, 2010 - The stimulus has exhausted itself and the stock market was duped.  The recovery’s a fraud.  Soon greed will give way to fear and the next leg down of the bear market will be upon us.

The New Economy of Doody Dude - March 05, 2010 - The economy, even in a depression, most certainly offers a bounty of opportunities that are more lucrative and rewarding than scooping dog poop…if only the government would let people fail so they could find them.

The World's All Tapped Out - March 02, 2010 - This time fiscal and monetary hocus-pocus won’t float the economy with ever expanding debt.  The world’s all tapped out. 

An Insider's View of the Real Estate Train Wreck - February 26, 2010 - For all intents and purposes, the United States home mortgage market has been nationalized without anybody noticing.

Curing Patients with Daffy's Elixir - February 23, 2010 - The economy, on the other hand, is a social phenomenon that is open-ended, constantly changing, and hardly predictable.  Correlations are nonlinear and outcomes are almost always misunderstood.

In Defense of Broken Government - February 19, 2010 - Here at the GDO we whole heartedly support leaders that do nothing.  No new laws.  No new agencies.  No new programs.  No new nonsense.  That’s the platform we’ll vote for.

Caught Red Handed - February 16, 2010 - How to go about withdrawing $1 trillion from the financial system without disrupting the economy is Bernanke’s big dilemma.

Will Obama Destroy Any Hope of U.S. Energy Independence? - February 12, 2010 - President Obama would rather punish domestic oil producers rather than attain U.S. energy independence.  It’s hard to believe, we know.

Why Inflation Will Prevail - February 09, 2010 - Where the Federal Reserve will get the money from is, of course, the origin of the farce.  That’s why inflation will prevail.

Keynesian Hogwash - February 05, 2010 - Naturally, all the deficit spending is based on Keynesian hogwash.  The fundamental hogwash of Keynesian economics is deficit spending.  That’s why the government loves it.

Teats On A Bull - February 02, 2010 - If it costs more to create a job than the job is worth, then the job is a waste of money.  It makes the world a poorer place.  It subtracts value from the face of the earth.  By all accounts, government stimulus jobs are more useless than teats on a bull.

A GDO Discretionary Redux - January 29, 2010 - Back on November 21, 2008, we had a breach of our usual GDO marching orders…instead of opinions, we offered advice. 

Madman On Fire - January 26, 2010 - Bernanke, no doubt, is a total madman.  Yet he goes about his business with the composure of a Buddhist monk on fire.  He helps the world ruin itself with peace and serenity.

"Buy The Decade" - January 22, 2010 - Down one day.  Up the next.  The stock market’s rise and fall had been as predictable as night after day…or day after night.  But yesterday that pattern changed.

Inflation or Bust - January 19, 2010 - What about inflation?  The enormous expansion of the money supply that’s taken place over the last 18 months is, by definition, inflation.

A Blowhard and the Printing Press - January 15, 2010 - One such blowhard – and imbecile – is the President of Venezuela, Hugo Chavez.

How You Create Wealth - January 12, 2010 - Production, of course, is how you create wealth.  Producing things and selling them to others.  It’s how the United States – and the United Kingdom before – came to economic and military power.

The Biggest Financial Deception of the Decade - January 08, 2010 - Hucksters and swindlers use to be so fun.  There was a merriment to their fiddles and frauds that was both amusing and endearing.

Don't Stop, Don't Quit - January 05, 2010 - So, whatever you do.  Don’t stop, don’t quit.  Even in a depression, dreams still come true.

What Should Happen in 2010 - January 01, 2010 - What will happen in 2010 is a question only the gods can answer.  That they shall answer it in good time, we are confident.

The Next Big Bull Market? - December 29, 2009 - The next big bull market will not commence until all expectations of stock market riches are purged and punished.

Special Christmas Edition 2009 - December 25, 2009 - That’s right.  You haven’t missed it.  As this immortal scene from the Charles Dickens classic, A Christmas Carol, declares…“It’s Christmas Day.”

The "Eye of the Storm" Strategy - December 22, 2009 - Last week the Prime Minister of Greece, George Papandreou, took a big bite of a hummus covered pita, and then vowed to cut the deficit from 12.7 percent of GDP to 3 percent in 2013.

The Curse of Time - December 18, 2009 - When the financial markets froze up in late 2008, Ben Bernanke turned up the monetary gas.  He lowered the federal funds rate to practically zero and added a trillion dollars to the Federal Reserve’s balance sheet.

The Big Government Lie - December 15, 2009 - Government spending always has and always will be successful at one thing in particular: Consuming wealth.

The Depression of the 2010's - December 11, 2009 - By advancing the destruction of wealth the government is delaying recovery.  What’s more, they’re ensuring a decade long depression: The Depression of the 2010’s.

The Future of America's Natural Gas - December 08, 2009 - These new technologies, coupled with an almost certain rise in natural gas price, has created an incredible opportunity that could bring early investors big returns.

Uncle Ben, The Benevolent One - December 04, 2009 - We consider the actions of the Bernanke to be that of a benevolent uncle.  For he gives the world exactly what it wants…lots of money.

The World Underwater - December 01, 2009 - Last Thursday, while many were indulging in their Thanksgiving feast, Dubai World announced it would be stiffing its creditors over $60 billion for at least the next six months.

How and Why China Will Flood the Gold Market - November 27, 2009 - Of the many follies of our time, U.S. trade and capital flows with China take the cake.

Hell To Pay - November 24, 2009 - Consequently, Blankfein may be right.  For according to Emerson, the moral and natural order of the world is divine.  Thus, by separating fools from their money, Goldman Sachs is, in fact, doing ‘God’s work.’

The Stuff Depressions Are Made Of - November 20, 2009 - Such talk by a high ranking government official, in our opinion, is the stuff depressions are made of.

Taxpayer Waste Disposal - November 17, 2009 - Of course, you know what that means.  That means the taxpayer – that’s you – would be called on but again…this time to pick up FHA’s tab.

If You Thought the Housing Meltdown Was Bad... - November 13, 2009 - The enchantment of an inflating housing bubble spurred an overcapacity of commercial retail space of epic proportions.

Pelosi's Work of Health Care Duplicity - November 10, 2009 - Such is the Pelosi vision for health care in America.  Where to help people you must take their money.  Where the harder people work the more their money is commandeered by the state.  Where those who disagree with you must go to prison.

Why Gold Has a LONG Way to Go - November 06, 2009 - Gold, as we’ve said many times before, is the ultimate asset of last resort.  No government controls its supply.  It can’t be printed or created out of thin air.

The Smoke and Mirrors of Stimulus - November 03, 2009 - The smoke and mirrors of stimulus does nothing to help the average man on the street.  Rather it temporarily puffs up the GDP so government economists can proclaim the recession is over.

Getting Rich Over and Over Again - October 30, 2009 - In a profession that’s full of one hit wonders, who disappear from the scene as quickly as they first appeared, Warren Buffett has a 50-year track record of success.  So how does he do it?

Bubbles in the Midst of a Depression - October 27, 2009 - In other words, in the midst of a depression we’re experiencing bubbles in oil, gold, stocks, and Goldman bonuses.  What does it mean?  How long will it last?

Don't Do It - October 23, 2009 - We believe the stock market will reverse to the downside.  Maybe not tomorrow, or the next day…but soon.  Of course we don’t know any more than the next guy.  We have no prophetic vision of the future.

Salting Economy with Debt - October 20, 2009 - In this grand folly, elaborately constructed by the work of men, the fresh flood of excess credit based liquidity that’s keeping the economy alive is the source of the debt that’s killing it.

Knowing Precisely When to Buy Stocks - October 16, 2009 - One day stocks will again be a great investment.  We just believe we’ll have to wait close to another decade for that day to come.  By then everyone will just know…stocks are for fools…That’s precisely when we’ll be buying them.

The Nobel Peace Prize is a Farce - October 13, 2009 - Nonetheless, by President Obama winning the Nobel Peace Prize, our faith in the once prestigious award, like the once almighty dollar, is at an all time low.

The Spectacular Depression - October 09, 2009 - Spectacular not in the sense that it’ll be magnificent in any way.  But, more accurately, it’ll be stunning.  And it’ll take your breath away.

Martingaling the Market - October 06, 2009 - The Martingale betting strategy for a game like roulette is really quite simple.  You begin by placing an initial bet, say $1 on either red or black.  If you win you again place $1 on red or black…which ever your intuition tells you will win.

This Week's Mantra - October 02, 2009 - On Tuesday we commented on oil’s drop in price and the stock market’s subsequent drop last week.  This week the mantra has been: stocks down, oil up.

Looking to Oil for Clues - September 29, 2009 - In the late 1990’s when the economy was growing, a drop in oil prices would result in an increase in stock prices.  Similarly, an increase in oil prices would result in a decrease in stock prices.  This no longer is true.

Compulsory Philanthropy at All Costs - September 25, 2009 - Sometime in early 1848 French poet Alphonse de Lamartine had a change of appetite.  For whatever reason, he no longer took to gobbling up frog legs but to gobbling up the new, forward thinking, ideas of the day.

Should You Buy Gold Right Now? - September 22, 2009 - Gold’s a proposition we’ve been hearing more and more of as of late.  But should you really buy gold?  That is the onus of today’s deliberations.

A True American Hero - September 18, 2009 - “Norman Borlaug—arguably the greatest American of the 20th century—died late Saturday after 95 richly accomplished years.  The very personification of human goodness, Borlaug saved more lives than anyone who has ever lived.

A Financial Vesuvius is Erupting - September 15, 2009 - Everything was just the way it was supposed to be in Pompeii on August 24, 79 A.D.  The gods had bestowed wealth and abundance upon the inhabitants of this Roman trading town.

Getting Chumped Again and Again - September 11, 2009 - The insiders, with upfront knowledge and knowhow, haul in the lion’s share…while the little guy gets chumped again and again.

FDIC Disaster in the Making - September 08, 2009 - By this account, the FDIC can only cover 0.08% of the total deposits they insure.  It’s a disaster in the making.

The Most Dangerous Stock Market Ever - September 04, 2009 - When looking back at the S&P500, so as to look forward, we are horrified by what we see.  Our eyes bug out and our jaw drops agape at the hazard before us.  For right here, in front of our eyes, is the most dangerous stock market the nation has ever seen.

Californication in the Land of Fruits and Nuts - September 01, 2009 - Californication in the Land of Fruits and Nuts. California, for whatever reason, has always considered itself the trendsetter state for the nation.  Much of this, we suspect, is just unwarranted self adulation.

In Celebration: Teddy Kennedy - August 28, 2009 - When the Kennedy Curse claimed his brothers…the greatest of expectations fell to Teddy.  On cue, he stepped center stage, pounded his chest, let out a bellow, and failed spectacularly.

On the Fritz - August 25, 2009 - The high water mark for earnings and incomes in 2007 won’t likely be eclipsed for many years to come.  In the meantime, the return to growth that Bernanke speaks of, won’t feel like growth for most at all; rather it’ll feel a long dreary slog across the Sahara Desert.

Butterfly Economics - August 21, 2009 - The Butterfly Effect.  Does the flap of a butterfly’s wings in Brazil set off a tornado in Texas?  That question was the title of a 1972 presentation by Edward Lorenz.

China's Speculative Bubble and Government Mischief - August 18, 2009 - From what we gather, with the U.S. consumer – China’s number one customer -- saving rather than spending, the Chinese government has embarked on a $586 billion stimulus program.

Borrowing Money to Buy GDP Growth - August 14, 2009 - We predict that for the third quarter of 2009 the U.S. economy will eke out what appears to be a half percent of positive GDP growth.

Ridding the World of Clunkers - August 11, 2009 - Back on July 27, 2008, Princeton University economics professor and former vice chairman of the Federal Reserve, Alan Blinder, proposed what he called the Cash for Clunkers program.  In fact, he outlined the scheme in a New York Times editorial titled “A Modest Proposal: Eco-Friendly Stimulus.”

The Beginning of the End - August 07, 2009 - Then in 1736 Whiston had a stunning revelation.  One gloomy fall day, gazing deep into the fog of the English Channel, he saw the future.  And what he saw scared him mad.

Showered with the Riches of Their Genius - August 04, 2009 - In their shortsighted view of the world, because consumer spending accounts for 70 percent of the U.S. economy, consumers must spend money – and lots of it – to grow the economy.

Sorry for Getting Caught - July 31, 2009 - According to a Gallop Poll released on Monday, Americans think the Federal Reserve’s job performance is worse than that of the IRS.

A Tent City Bull Market - July 28, 2009 - The work of a central banker is that of the weather man…it consists mainly of hunches, conjectures, and inferences.

An Ominous and Profound Symbol of Things to Come - July 24, 2009 - There’s nothing like an inflating market bubble to soften the brains and warm the hearts of men to ideas that would otherwise be impossible.

Getting More of What You Least Expect - July 21, 2009 - We’re bewildered and befuddled by the baffling economic enigma we’re living in.  We look for correlations and find disconnects. 

Hallelujah! - July 17, 2009 - The economic growth model of rising asset prices and credit based consumption is dead.  In other words, the world as we’ve known it for the last quarter century is over…finished…and done.

Pounding on Inflation with a Jackhammer - July 14, 2009 - What’s happening is painfully simple.  As unemployment rises, the debt structure that sustained the middle class is breaking down. 

Confessions of a Cubicle Man - July 10, 2009 - We worked in a cubicle for eight years…putting our nose to the grindstone, day in and day out, grinding out massive quantities of technical reports on subjects we knew nothing about.

Misreading the Economy...More or Less - July 07, 2009 - The economy had been so amiable, affable, and agreeable over the last 3-months.  The DOW had rallied 33 percent from its March 9th low.

Celebrating the Independence of These United States - July 03, 2009 - Today we’ll pause from our usual market observations to offer some words on These United States.

The Lumberjack Slam Indicator - June 30, 2009 - While man’s collective behavior is typically reduced to that of animals and idiots – soccer riots and running up the price of beanie babies – every now and then we all come together, hold hands, and do something of unified intelligence.

Mountebanks and Morons - June 26, 2009 - We know it’s absurd.  But they love the idea.  And they’ll do everything to prove it right…even if it ends in economic collapse.

Eating Rabbit for Dinner - June 23, 2009 - Markets rise and markets fall.  So, too, they fall and they rise.  Sometimes a little.  Sometimes a lot.  But always one or the other…most of the time.

Wreaking Mischief on the Lives of Billions - June 19, 2009 - Now that the whole trembling edifice of it all’s come a tumbling down the government wants to give the Federal Reserve more power to wreak economic mischief on the lives of billions.

Better Lucky Than Good - June 16, 2009 - Legend has it, Laffer first sketched the Laffer Curve out on the back of a napkin in 1974 while dining with Donald Rumsfeld, then Chief of Staff to President Ford, and Dick Cheney, Rumsfeld’s deputy at the time.

An Intangible Experience of Significant Cultural Importance - June 12, 2009 - This is one of the ironies of the current spending spree…that all the money squandering is so dreary.

The Three Legged Fire Eating Hunchback - June 09, 2009 - What we see is so fantastic and fanciful our jaw drops and our eyes bug out like a school boy first peering into the circus freak show tent at the three legged fire eating hunchback.

Mopping Up the Funny Money - June 05, 2009 - We find groupthink, consensus without debate, and conventional wisdom to be hardly wise at all; rather we find it unwise.

Why Rising Yields Have Only Just Begun - June 02, 2009 - “Ten trillion dollars over the next 10 years is just an indication that Washington is really out of control and that there is no fiscal discipline whatsoever.”

Where Will the Money Go? - May 29, 2009 - In the macro sense of economic markets, things are hardly predictable…or logical.  What one thinks should happen doesn’t.  And what shouldn’t happen does.

Downgrading U.S. Inc. - May 26, 2009 - To borrow money is to borrow from your future.  For the debt you take on today will be a tax on your income tomorrow.

Revisiting the Gilded Age - May 22, 2009 - If getting rid of a stuffed elephant head is part of the fall of the latest Gilded Age, then we’re all for it.

Pathological Dedication - May 19, 2009 - In the dismal science of economics the consequences of taking reckless actions today are not often apparent tomorrow.

The Death Knell of an American Icon - May 15, 2009 - Way back on November 18, 2008, we reflected on the United Auto Workers (UAW) success at leeching the blood from their host – Detroit’s Big Three – and pondered the quid pro quo they’d receive for helping then President-elect Barack Obama win the White House.

Not Your Granddaddy's Depression - May 12, 2009 - We agree, in that fewer job losses are better than more.  But still, no matter how you look at it…a half million jobs were lost in April.

Fattening the Turkeys for Slaughter - May 08, 2009 - Perhaps Phillip Dow is right…perhaps it’s not the end of the world after all.  Still we have some reservations about what’s in store for the stock market. 

Scoundrels on Parade - May 05, 2009 - On December 4, 2008, Bank of America Chairman and CEO Ken Lewis made history.  He became the first man ever to win Banker of the Year…twice.

A Blessing in Disguise - May 01, 2009 - Wall Street loved the two tenths of one percent improvement in the rate of economic death and celebrated by launching the DOW 168.78 points…or for a 2.1 percent increase.

A Good Man in a Bad Trade - April 28, 2009 - In an industry that scoffs at virtues of honesty, integrity, and trust, doing the right thing unfortunately came at an unbearable price for Kellermann. 

Laboring On Your Behalf - April 24, 2009 - Of course when jobs are sparse, the opposite happens.  Paychecks disappear, and as consumption fades, money flows to a trickle…then it dries up all together as more jobs vanish.

A Run-in with a Wise Elder - April 21, 2009 - About the time Elvis Presley choked on his last pill, the impossible happened…inflation and unemployment simultaneously went vertical.

Entering the Inferno - April 17, 2009 - The quickest way to instigate a revolution is to take away a man’s livelihood…and creature comforts.

Checking the Mirror for Bruises - April 14, 2009 - Is it possible, that just maybe, perchance, 10-Year Treasury Notes yielding only 2.5 percent, while deficits are quintupling, just ‘might could’ be a bit of an unwarranted aberration?

Printing Money and Handing Out Cheer - April 10, 2009 - Printing money and handing it out to people, regrettably, is a good way to call its value into question.  For exchange rates are subject to change. 

The Difference Between Recession and Depression - April 07, 2009 - Yet the mainstream press still doesn’t get it.  They’re still calling it a recession – not a depression.  Maybe it’s just a matter of semantics.  But we believe we’re in a depression – not a recession.

Unloading the Haymakers - April 03, 2009 - What a rapid fall from grace it has been for bankers?  As the economy tanked, so did their status.  Just last year they were masters of the universe…now they are everyone’s scapegoat.

A New Global Reserve Currency? - March, 31, 2009 - “The more you owe, the more it becomes attractive to devalue the currency,” pointed out Warren Buffett at the annual Berkshire Hathaway meeting back in May 2006.

Crude Grumblings - March 27, 2009 - So, from what we gather, demand is weak…yet prices are going up.  Yet, contrary to Schork, we know this is not an entirely logical world.  Rather, we find it to be predictably illogical. 

No Looking Back - March 24, 2009 - “You ought to share it, and God will bless you for doing it,” were the words spoken by one Mary Huguley of Hartford, Connecticut, over the weekend. 

The Mother of All Bubbles - March 20, 2009 - For there’s nothing like a booming bear market rally to soften the collective brains and warm the hearts of a populace eager for some financial optimism.

One Billion Communists - March 17, 2009 - Economics is the dismal science, they say.  Hence economists must be dismal scientists.  Yet even that is misplaced adulation.  For what’s scientific about gawking at human behavior?

The Best Years of Our Life - March 13, 2009 - That’s enough on the economy and markets today.  There’s more we could go on about.  But we’re not in the mood.  We celebrated out fourth wedding anniversary last night.

Missing the Point - March 10, 2009 - Everyone’s a scoundrel and a scalawag these days…bankers, CEOs, Senators, the whole lot.  Former master of the universe personas off Wall Street have been marked down to junk grade status. 

Eager to Pay More Taxes - March 06, 2009 - We receive different forms from different agencies all the time.  Often we can’t comprehend why they exist.  What’s their purpose for being? 

Nowhere Left to Hide - March 03, 2009 - “Right now we’re in the period of maximum recession stress, where the big cuts are being made,” was how economist Ken Mayland, president of ClearView Economics, put it to AP last Friday.

Enjoy the Ride - February 27, 2009 - The manic stock market took a break from its despair on Tuesday.  The DOW bounced up 236 points to close the day at 7,350.

An Alternative Economic Recovery Plan - February 24, 2009 - So today, having sharpened our pencils, and put on our thinking caps, we humbly endeavor to suggest an alternative economic recovery plan to the one currently being pursued.

How to Build a Legacy of Wealth - February 20, 2009 - If you’re unaware of the fabulous folly we’re facing here in the land of fruits and nuts, you are missing out on a rather exceptional public spectacle.

The Law of Must and Shall - February 17, 2009 - By now you know, as well as we know, it was all an illusion of wealth made possible by an ever expanding bubble of debt.

The Buying Opportunity of a Lifetime - February 13, 2009 - It was May 1939.  The nation was staggering through a 10-year depression.  And FDR’s Treasury Secretary, Henry Morganthau, addressed Congressional Democrats.

Obama!  Where Is Thy Stimulus? - February 10, 2009 - If you still have a job…congratulations.  If you’ve lost your job, don’t take it personal…this economy stinks and a lot of other good people have lost theirs too.

The Long Hard Road to Economic Recovery - February 06, 2009 - Such nonsense, such moronic bosh has successfully produced a coddled generation of idiots.  You find them in low level service positions. 

Hoping for Failure - February 03, 2009 - The latest reports from the economic front are dreadful.  “Economy’s new plunge is worst in quarter-century,” was a headline from AP last Friday. 

Take this Job and Shove It - January 30, 2009 - President Obama’s stimulus bill passed through the House without a hitch on Wednesday.  The world wants it.  So they shall get it.

The Great Depression II...We're Already In It - January 27, 2009 - Things are ugly.  There’s no way around it.  And it’s getting worse by the day.  In fact, it’s gotten so bad that – for the first time ever – Microsoft’s laying people off…5,000 of them.

Confessions of a Touch and Go Economy - January 23, 2009 - Some years ago a buddy of ours took up the trade of tattoo artist for a living.  He didn’t know much about it…nor was he much of an artist…but he reckoned it was a booming industry to go in to.

The Endearing Irony of it All - January 20, 2009 - With all the glum financial news of late we were beginning to think the world had lost its humor.

Ain't Worth a Darn - January 16, 2009 - Naturally, the fundamental tenet of Keynesian economics is deficit spending.  And naturally the U.S. Government’s been running budget deficits practically nonstop for nearly 50 years.

Medieval Mathematics from Pisa Italy - January 13, 2009 - Across the Arno River from the Leaning Tower, in Pisa, Italy, sits a modest statue.  Hardly any visitors to the Tower come across it. 

Under the Juggernaut of Self Will - January 09, 2009 - Self preservation is a fundamental human instinct.  But under the juggernaut of self will the mind can overcome this…to the demise of its possessor.

A Crude and Offensive Bamboozle - January 06, 2009 - Suddenly – in what was almost embarrassing to watch – Bob Dole was appearing in Pepsi commercials gawking at Britney Spears like a drooling adolescent.

Not All Doom and Gloom in 2009 - January 02, 2009 - It’s 2009.  And we have some questions.  Will this year be better than last?  Will the stock market recover?  What about the economy?

In Memoriam: 2008 - December 30, 2008 - Like blowing off the IRS or giving a Hells Angels Biker the middle finger, if you spend more than you make, you’re not only asking for trouble…you’re inviting it too.

Special Christmas Edition - December 25, 2008 - “Running to the window, he opened it, and put out his head.  No fog, no mist; clear, bright, jovial, stirring, cold; cold, piping for the blood to dance to; Golden sunlight; Heavenly sky; sweet fresh air; merry bells.  Oh, glorious!  Glorious!

The Biggest Ponzi Scheme of All - December 23, 2008 - “‘It’s impossible to get in, but we can get you some if you’re nice,’” reported the New York Times last Friday.

You Can't Have All Three - December 19, 2008 - The school yard loan shark when we were a kid was a brawny fellow named Booker Brown.  Booker wasn’t the most creative entrepreneurial.

Fertile Soils of Lunacy - December 16, 2008 - Academic theories are often nothing more than elaborate obfuscations.  They serve to convolute and excuse actions that would otherwise be reckless or preposterous.

There Is Hope - December 12, 2008 - No longer will people add a couple extra bucks to the debt side of their ledger so they can stick a pair of plastic light up reindeer antlers in their yard.

The Risks are Inherent - December 09, 2008 - Sometime around 1150 AD Bhaskara II, the 12th Century Indian mathematician, had a novel idea…a wheel that would run forever.

The Chance of a Lifetime? - December 05, 2008 - Two weeks ago, if you remember, the kingpins of Detroit’s Big Three flew to Washington in their classy corporate jets expecting a $25 billion bailout.  Congress demurred.

The Same Story, Yet More Delusional - December 02, 2008 - First they thought they were staring down a long dark tunnel with no light at the end.  But then they blinked, and screamed, for it was the barrel of a loaded gun.

A Merry Feast - November 28, 2008 - Looking for happiness in the stock market assures a life of dissatisfaction.  Still many pursue it somberly to the mausoleum.

Caveat Emptor - Let the Buyer Beware - November 25, 2008 - Today we’ll begin by considering one unpleasant word: Snuff. Smokeless tobacco, that is. 

A GDO Discretionary - November 21, 2008 - So here it is…from the heart…practical, discretionary advice on what you can do to make it through the economic crisis.

The Wrath of Jimmy - November 18, 2008 - The pursuit of ignominy is nondiscriminatory.  For it’s with equal opportunity that each individual is granted the occasion to act a buffoon.

Overshooting the Mark - November 14, 2008 - The title of the next chapter in the story of the great economic unraveling could be ‘Retailers Go Bust.’

Stimulus is for the Birds - November 11, 2008 - But what’s now being pushed across the land as the answer is in the form of the latest lexicon for money to be driveled out…stimulus.

Election Day Hangover - November 07, 2008 - Following Tuesday’s election we have one word of advice: Panic!

Alternative Two - November 04, 2008 - To anyone who suits up and shows up to work everyday, near regardless of what industry, it’s been obvious for at least a year that the economy’s receding; not proceeding.

Suspicious of Change - October 31, 2008 - Our beat here at the GDO is money…not politics.  In this regard, we try to limit our discussion of politics to that which relates to money

The Post Dollar Reserve Standard Era - October 28, 2008 - The latest acronym to fix the financial system was put to use yesterday.  Specifically, the Federal Reserve began buying commercial paper through its Commercial Paper Funding Facility (CPFF).

What's Needed Now - October 24, 2008 - Politicians, academics, Leonardo DiCaprio, and soothsayers have been thrust upon the world in mass…each with a plan, a scheme to fix the economy and make society over in their image.

The Big Bailout of 2008 - October 21, 2008 - There has been a great deal of finger-pointing going on.  Who is to blame for this extraordinary crisis?

When Heads Roll - October 17, 2008 - President George W. Bush stood in the White House rose garden Tuesday morning, where he hocked the latest government plan to fix the financial system.

Two Critical Rules of Investing - October 14, 2008 - And thankfully we’re not the guy that had to explain to his wife how he’s lost 40% of their retirement savings in the stock market over the last year.

Once In A Blue Moon - October 10, 2008 - Come Wednesday morning, U.S. markets didn’t know what to make of it.  At opening bell traders blinked before their trading screens as one blinks before a man with an eye patch…

Can You Spare $7 Billion? - October 07, 2008 - Like free flowing credit, the world seems to have come up short on leadership and tough decision making.  In their place are calls for bailouts, rescues, recapitalization, and assistance…no matter what the cost.

Wooden Arrows, Rum, and Wool - October 03, 2008 - Congress has been extraordinarily busy this week working over and disfiguring the government bailout of Wall Street.

FDR's Raw Deal - September 30, 2008 - While that FDR – the thirty-second U.S. President – was responsible for setting up Fannie Mae, today we set our sights on the FDR that was responsible for running it into the ground…Franklin Delano Raines.

Bailing Out Your Neighbor - September 26, 2008 - Congress spent the week debating Paulson and Bernanke’s mega bail out proposal to rescue the financial industry from the consequences of their arrogant greed.

Heavy On The Lard - September 23, 2008 - We regret to have missed the halcyon days of the great American experiment.  By the time we came to be Jimmy Carter was making a mess of things in the White House and Elvis Presley had just popped his last pill.

A High Stakes Research Experiment - September 19, 2008 - Another financial bombshell exploded Tuesday evening in the form of an $85 billion dollar bailout of insurance giant AIG.

Black Sunday - September 16, 2008 - Treasury Secretary Henry Paulson had to work another weekend shift.  But he wasn’t alone.  Several of his banker buddies had to also punch their time cards for the weekend long meeting.

A Work of Genius - September 12, 2008 - We often marvel at the side-splitting idiocies of the modern world.  Right now a spectacular hubbubs being made over the election race.  Yet most observers, we believe, are lacking the proper perspective.

Ancient Yankee Secrets - September 09, 2008 - Of course with government bailouts the taxpayer is always on the hook.  To truly reform the situation would mean no more government bailouts.

Learning To Fall - September 05, 2008 - With the summer twilight slipping beyond the western Pacific horizon and the early autumn glow budding up from the eastern plain…we’ll pause a moment...

The Magic Reversible Currency - September 02, 2008 - U.S. markets were closed yesterday for Labor Day, but still we labored on.  For the world keeps on turning…even on holidays.

The Useful Fool - August 29, 2008 - Sentiment is indifferent to logic or reason.  Like the direction the wind blows, it can shift in an instance.  Yet sentiment has the power to change the world.

Taking Out The Bazooka - August 26, 2008 - Still we observe with the keen interest of a circus patron…gawking at the knife jugglers, fire breathers, and lion tamers…always on the lookout for a severed finger or worse.

The Ghost of 1981 - August 22, 2008 - It’s no secret.  Everything costs more.  And the rate at which things cost more is rising at the fastest pace since 1981.

Helping People Ruin Themselves - August 19, 2008 - In what must be the most telltale indication to date that the credit bubble is leaking gas, we find that bankers are forbidden membership to London clubs.

Trend Reversal? - August 15, 2008 - The trend over the last six years – dollar down, oil up – appears for the moment to have reversed.

An Innocent Indiscretion - August 12, 2008 - This answer was delivered to us some years back with the conviction of a Baptist preacher.  We’d made the innocent indiscretion of asking a broker with Edward Jones ‘when is the best time to buy bonds?’

Some Essential Insights - August 08, 2008 - Of course that’s rhetorical.  For we have opinions…and lots of them.  But we’d rather not weigh you down with our own claptrap today.  We’d rather offer you someone else’s.

Daisy Chain Finance - August 05, 2008 - While this may temporarily keep the financial system from coming completely unglued.  All this liquidity – money created out of thin air – is not without consequence.

Confessions of a Cubicle Man - August 01, 2008 - An old friend called us Monday to report that it was the 40th Anniversary of the office cubicle.  We got a little chuckle and chortle at this regrettable boon to civilization.

When and When Not to 'Buy and Hold' - July 29, 2008 - As you can see, the once highly touted ‘buy and hold’ investment strategy has been an awful way to build investment wealth over this period.

An Unmitigated Disaster - July 25, 2008 - ‘Too big to fail’ has been the popular mantra for justifying the Fannie Mae and Freddie Mac bailouts.  Like any bumper sticker bunkum, if it’s repeated enough times people come to believe it.

More Zeros To The Rescue - July 22, 2008 - Here at the GDO we’re often critical of the Federal Reserve because they increase the money supply faster than the rate of economic growth. 

A Can of Worms - July 18, 2008 - Facts are often unpleasant.  In fact, they’re disagreeable most of the time.  That is a fact.  And it is both unpleasant and disagreeable. 

National Autonomy For Sale - July 15, 2008 - Made In The USA was once a symbol of superior quality.  It was the deluxe brand name.  And the world wanted it. 

Midyear Review - July 11, 2008 - With half the year now behind us we thought it appropriate to take a moment and look back at where we’ve been so we can better consider where we’re going.

Mob Psychology Research - July 08, 2008 - For the moment we are still distilling the findings of the research on mob psychology we conducted last Friday night.

The Battle of Puebla - July, 04, 2008 - Coincidentally, today we find ourselves in Puebla, Mexico, where on May 5, 1862, a famous battle took place.  In the U.S., this day’s often mistaken for Mexico’s independence from Spain.

Pyramids and Mangos - July 01, 2008 - It’s likely the ancient residents of the first great city of the western hemisphere thought that it would be around forever.  At its peak around A.D. 500 – after already flourishing for 500 years – the city was home to more people than Rome.

Larger Than Large - June 27, 2008 - Mexico City makes Los Angeles look small,” we remarked to our wife, Maribel, while peering out the airplane window just prior to landing.

The Mexican Miracle - June 24, 2008 - Mexico’s economy experienced robust growth during the mid part of the 20th century.  The period from 1930 to 1970 was later called the “Mexican Miracle” by economic historians for this reason.

The Invaluable Trend of Rising Prices - June 20, 2008 - We always seek to identify the silver lining for you.  And with regard to rising food and gas prices, here it is.

The Task At Hand - June 17, 2008 - A great gathering of central bankers, top economists, world improvers, mountebanks, and social dreamers took place on the posh terra firma of Massachusetts Cape Cod earlier this month.

The Mercantilist's Burden - June 13, 2008 - This week we discovered that for April 2008, we Americans collectively spent $2 billion more per day than we made on a global basis.

Caught Between A Rock and A Hard Place - June 10, 2008 - Yes, it was a painful day with much gnashing of teeth on Wall Street.  Between the spike in oil prices and the unemployment rate, investors were despondent.

Reaping the Salt of Excess - June 06, 2008 - We like receiving checks in the mail.  It’s fun.  Usually they’re payment for something we have done in return…like work.

Taking A Bubble Bath - June 03, 2008 - Bubbles are fun…especially when you’re 17-months old.  That’s how old our son is.  And he loves bubbles.

Smelling The Roses - May 30, 2008 - We find these sentiments to not be entirely accurate.  First we believe the economy already is receding.  And second, we believe the books are already being cooked.

From Fool To Knave - May 27, 2008 - Several months ago residence of an affluent Sacramento neighborhood were overcome by a remarkable irritation.  They’d witnessed an incredible eyesore sprout up from the ground like weeds following a spring rain.

Occurrence On A Wednesday In May - May 23, 2008 - John Hofmeister, president of Shell Oil Co., stood before congress on Wednesday, May 21st, and told them exactly what they wanted to hear.

Bush Steps In A Cow Pie - May 20, 2008 - Between 1798 and 1826, English economist, Robert Thomas Malthus, gazed gravely at society and grunted and grimaced.  For he perceived an astonishing problem.

Being Donald Trump - May 16, 2008 - Some amazing, extraordinary, and remarkable things were done to some not so amazing, extraordinary, or remarkable houses over the last several years.

Healing The Crippled - May 13, 2008 - We’ll take a moment of your time today to reflect on an important and admired aspect of the modern world.  It’s an old shortcoming of humanity.

The Silence of Your Inner Chi - May 09, 2008 - Joe Blow says to John Doe circa 1999: “My broker just got me into the new IPO for WhizBang.com.  They’re a ‘New Era’ business from Silicon Valley…part of the digital revolution…the miracle economy that’s going to make us all rich.”

The American Public Knows Better - May 06, 2008 - Plain and simple.  Economists are idiots.  How’s that for insight?  We know you may not find this new knowledge to be too impressive…but we feel it’s worth what you paid for it.

Throwing Darts In A Blizzard - May 02, 2008 - Federal Reserve Chairman Ben S. Bernanke stood center stage on Wednesday, April 30th, and showed to the world that he’s a complete and utter buffoon.  Only, no one laughed.

The Drapier's First Letter - April 29, 2008 - William Wood was an English retailer of iron goods.  Yet he had friends in high places.  For in 1722, he was granted a patent by the English Parliament to coin copper money for use in Ireland.

Misery Index Going Up - April 25, 2008 - In what must be an unsettling sign of things to come, rice hoarding and purchase restrictions have hit U.S. consumer markets.

Going South - April 22, 2008 - We don’t watch financial talk shows.  In fact, we don’t even get cable.  But a friend recently told us that Larry Kudlow, of the popular TV program, Kudlow & Company, has been referring to the dollar as the U.S. Peso.

Feeling Aggraflated - April 18, 2008 - So when 60 to 80 percent of your budget goes to purchasing food, and its price has nearly doubled in just three years, you feel aggravated.  More accurately, you feel aggraflated.

What is Money? - April 15, 2008 - If you were to ask someone 100 years ago: What is money?  They would reply: Gold.  If you asked the same question 200 hundred years ago the reply would be: Gold.

The Whirlwind Sweeping Across The Planet - April 11, 2008 - We learned this week that the price tag for the mortgage windstorm has reached $945 billion.  Veronica Smith, for AFP, reports the destruction...

Still Believing In The Difference - April 08 - 2008 - You can buy a winning lottery ticket.  You can beat the dealer at blackjack.  You can buy shares of Google and watch them go up.  You can flip condos in Miami.

In Bernanke We Trust - April 04 - 2008 - In 1908 Italian Economist Enrico Barone put down his meatballs and marinara and gazed into the outer frontiers of deep space.  Looking around, he couldn’t believe his eyes.

Bumper Sticker Bunkum - April 01, 2008 - Yes.  It’s spring.  And election season’s in full bloom.  Still, we haven’t even gotten through the Democratic Party’s primary.  Coincidently, with the housing market meltdown, the presidential hopefuls have a hot topic to fire off some buzzwords at.

A Wrong Against The Human Race - March 28, 2008 - While some individuals made money off their mining ventures, society as a whole did not.  Jevons astutely asked the question: “Have the Gold Discoveries added to the Wealth of the World?”

Knowing When To Say When - March 25, 2008 - If you recall last Friday, we left you with a prescient market prediction.  Through inductive reason and the law of the yo-yo’s reflexive property we conjectured that “…the DOW shall drop at least 200 points on Monday.”

The Law of The Yo-Yo - March 21, 2008 - We’re grateful it came.  Not because we made money off it.  But because without this very event, we never would have discovered the law of the yo-yo.

Disorderly Disfunctioning - March 18, 2008 - “In the long run we are all dead.” – John Maynard Keynes With those eight single syllable words John Maynard Keynes provided the rationale for direct government intervention in the economy.

Eager to Pay More Taxes - March 14, 2008 - We receive different forms from different agencies all the time.  Often we can’t comprehend why they exist.  What’s their purpose for being? 

A Bone Dry Wishing Well - March 11, 2008 - Ground water is stored naturally below the earth’s surface in the pores and cracks of underground rocks and in the spaces between grains of sand and gravel.

Nothing for Something - March 07, 2008 - You get less out than you put in.  You work at a diminishing return.  Your pay stays the same yet prices go up.  You get nothing for something.

Charles Ponzi Day - March 04, 2008 - Yesterday was Charles Ponzi Day.  Bet you didn’t know that.  We’ll admit.  We didn’t either…until an attentive reader – Harry T. from Tucson, AZ – alerted us of this obscure factoid.

Making Up For Lost Time - February 29, 2008 - It all seems so systematic, arranged, and orderly.  Sixty seconds make a minute, 60 minutes make an hour, 24 hours make a day, and one day equals one complete rotation of the planet earth.

The Shakeout - February 26, 2008 - Driving east along the 10-Freeway toward downtown LA on our way home, we always notice the old Victorian mansions to the south that are in need of some fresh paint and some fresh care.

When Kids Don't Want Candy - February 22, 2008 - We remember as kids coming home with a pillowcase full of candy on Halloween Night.  We were in heaven.

International Contagion - February 19, 2008 - Joseph Quinlan, chief market strategist at Bank of America, did the research.  And what he discovered was a $7.7 trillion international credit crisis.

The Greatest Fools of All - February 15, 2008 - Even if you’re not a speculator…you may have experienced the euphoria that accompanies the “greater fool theory” when the real estate market was booming just several years ago.

A Matter of Integrity - February 12, 2008 - Six short years ago €1.00-euro could buy you just $0.88-cents of a dollar.  Now €1.00-euro will buy you $1.45-dollars.  In other words, the dollar will only buy you 60-percent of what it use to when measured in euros.

A New Record - February 08, 2008 - President Bush proposed a Federal Budget of $3.1 trillion on Monday setting a new record.  David Stout and Robert Pear, of the New York Times, report the minutiae…

A Proclivity For Fraud - February 05, 2008 - It starts innocently enough.  A tall tale.  Some slight embellishments of the facts.  For who doesn’t like a captivating story.

Economic Nausea - February 01, 2008 - Big Ben doubled down Wednesday, following up last weeks emergency 75-basis point rate cut, with an additional rate cut of 50-basis points.

Global Food Price Inflation - January 29, 2008 - There are some things you can do without.  And there are some things you can’t.  There are wants.  And there are needs.

Bernanke Hits The Panic Button - January 25, 2008 - Federal Reserve Chairman Ben Bernanke hit the panic button on Tuesday, January 22nd, with an emergency 75-basis point interest rate cut.  We have some questions...

Betting On A Trifecta - January 22, 2008 - And as the economy slows in the early part of 2008 the American populous is betting on a trifecta.  What choice do they have?  The circuses are many, with American Idol and NFL Football, but the bread has become scarce.  How can one be any fun without the other?

Medieval Mathematics from Pisa Italy - January 18, 2008 - Across the Arno River from the Leaning Tower, in Pisa, Italy, sits a modest statue.  Hardly any visitors to the Tower come across it.  And of those who do, few realize that it’s of the greatest mathematician of the medieval times.

Diego's Rebellion - January 15, 2008 - The Federal Reserve has found themselves in quite a pickle.  For this is the exact opposite of what occurs during the much elated ‘goldilocks’ scenario.

There's a First for Everything - January 11, 2008 - “Kathleen Casey-Kirschling, born on January 1, 1946, is acknowledged as the nation’s first baby boomer and the first to apply for social security benefits, for which she will be eligible in 2008.”

The Great American Nightmare - January 08, 2008 - It was quite visible that the developers had gone mad.  And in their crazed dash to reap massive profits, they had barfed out a massive and sterile suburbia of intolerable and repulsive horror.

An Impressive Dilemma - January 04, 2008 - “Twenty billion dollars here, $20bn there, and a lush half-trillion from the European Central Bank at give-away rates for Christmas.  Buckets of liquidity are being splashed over the North Atlantic banking system, so far with meagre or fleeting effects.”

What Will 2008 Bring? - January 01, 2008 - Will this be the year the DOW rockets past 15,000?  Will gold take out its old nominal high of $850 per ounce set on January 21, 1980?  Will it eclipse $1,000?

GDO 2008 Ambitions - December 28, 2007 - With the New Year on the horizon we thought we’d take a moment to share with you our goals for the Great Depression Online in 2008.

"It's Christmas Day" - December 25, 2007 - “Running to the window, he opened it, and put out his head.  No fog, no mist; clear, bright, jovial, stirring, cold; cold, piping for the blood to dance to; Golden sunlight; Heavenly sky; sweet fresh air; merry bells.  Oh, glorious!  Glorious!

Fundamentals Do Matter - December 21, 2007 - Even in a world fraught with central bankers, honesty…integrity…and trust still do matter.  For how well you sleep at night is contingent upon how well you practice the fundamentals.

Snookered By Inflation - December 18, 2007 - It happens so subtly you don’t even notice it at first.  You actually feel wealthier, when, in fact, you’re not.

Bernanke Toes The Line - December 14, 2007 - Ben Bernanke stepped up to center stage on Tuesday, December 11th, and did exactly what everyone knew he was going to do…  He acquiesced.

A Moral Hazard of Epic Proportions - December 11, 2007 - A “moral hazard” is the idea that a person or party shielded from risk will behave differently than if they were fully exposed to the risk.

Beware of Prophets - Part 2 of 2 - December 07, 2007 - We recounted the little tale of William Whiston, and his prediction of the end of the world, for entertainment and perspective.  And to raise the question: Do modern day prophecies still get the best of us?

Beware of Prophets - Part 1 of 2 - December 04, 2007 - A riddle of human nature is the desire to control the uncontrollable.  The weather…seasonal flu viruses…the business cycle.  We find comfort in the illusion that these have been tamed – or that they can be predicted with certainty.

The Housing Bubble Burps - November 30, 2007 - Today we look back to 1691, and to John Locke, for some perspective on the ongoing housing meltdown.  With all the headlines coming in from all directions, we needed a north star for guidance.

A GDO Confession - November 27, 2007 - We have a confession to make.  We must come clean.  So here it is -- the cold hard truth.  And we'll be frank: We don't know what we're doing.

The Great Depression Online issues archived below are from the original auto-responder series that ran between August and November 2007.

Goblins of Inflation - On Halloween Day 2007, Federal Reserve Chairman Ben Bernanke looked the goblins of inflation square in the eyes and cut interest rates 25 basis points…essentially saying ‘bring it on.’

Home Sales Drop, Prices Too - "Sales of existing homes dropped 8 percent to a 5.04 million unit annual pace in September, the lowest on record dating to 1999, the National Association of Realtors said on Wednesday."

Who Is This Clown? - We found this gem on CNN Money in an October 22, 2007 article.  It brought a smirk to our face…  But we felt slighted.  For the article failed to mention the most fundamental of facts.  That Fed Governor Randall Kroszner is a quack.

Electricity Prices Jump - "Electricity prices see biggest jump in 25 years", begins an October 22, 2007 story we picked up on CNN Money.

Wisdom From The Ancients - In today’s world, where any fool can be voted president, we must look to the ancients for wisdom.

A Hummer More Ecologically Friendly than a Prius? - "Feeling a bit smug about owning that hybrid?"  So began an article in the March 23, 2007 Investors Business Daily…

Reader Comments - "A Great Depression can happen again," begins an email from a Great Depression Online reader.

200 Percent Price Hike for Bread - Zimbabwe’s government has allowed bakers to increase the price of a loaf of bread by more than 200 percent”, begins an AFP story that we came across on Yahoo News on Sunday October 14, 2007.

Questions Issue - Here it is, the second week in October 2007.  And we sit and we wonder...  We are all full of questions.

Dollar Credibility - The dollar has lost its credibility.  This fact recently put a hole in our pocket book.

The Useful Fool - Part 2 of 2 - If there was ever a phenomenon of the mad world of California politics it is U.S. Senator Barbara S. Boxer.

The Useful Fool - Part 1 of 2 - “Against the old contention … that we must all be useful, be efficient, become officials and have power, the old reply is that there are always enough fools left in the world who are willing to be useful, be busy and enjoy power, and so somehow the business of life can and will be carried on.”  –Lin Yutang

'Helicopter' Ben Lives Up To His Name - Making good on his name ‘Helicopter Ben’, Federal Reserve Chairman Ben Bernanke cut the interest rate a half point to 4.75 percent on September 18, 2007.

Panic at Northern Rock - Simon Jenkins, writing in the September 19, 2007 edition of The Guardian, offers the following…  "When a bank says don’t panic, the wise panic.  The first person to get his money out is always richer than the last."

Americans Are Failing to Keep Up With Their Mortgage Payments - Bonus 3 - As reported in the August 12, 2007 edition of the AP “U.S. Homeowner Woes Felt Around World” By Matt Moore, AP Business Writer.

Look Back to The Future - Bonus 2 - When legendary commodities trader Benjamin Hutchinson cornered the wheat market in 1866 he was the first to recognize an underlying market relationship – the price of wheat was affected by the price of gold.

"Where is All the Money Coming From?" - Bonus 1 - Over the last several years have you ever looked around you and asked the simple question…  "Where is all the money coming from?"

Review of the Great Depression Online Seven Day Course - Day 7 of 7 - "History does not repeat itself, but it does rhyme."  Mark Twain.

'Helicopter Ben ' - Day 6 of 7 - If there was every any doubt what Federal Reserve Chairman, Ben S, Bernanke, would do in a time of financial crisis, look no further than his November 21, 2002 speech, Deflation: Making Sure “It” Doesn’t Happen Here.

Could You Really Become 95 Percent Poorer Overnight? - Day 5 of 7 - Unequivocally yes.  It has happened many times throughout history.  It happened in the United States during the Revolutionary War and again during the Civil War.

Charles Ponzi and The Ponzi Scheme - Day 4 of 7 - Charles Ponzi gained notoriety in 1920 when he hatched a ploy offering 50 percent return on investment in 45 days, or a 100 percent return in 90 days.

The Impending Wrath of Entitlement Programs - Day 3 of 7 - On January 18, 2007, Federal Reserve Chairman, Ben S. Bernanke testified before the U.S. Senate, Committee on the Budget, on the long-term fiscal challenges facing the United States.

Today's Drunkenly Distorted Economy - Day 2 of 7 - In America, today, we import more goods and products than we export.  This has been going on since the 1970's, but the magnitude of the imbalance has reached historic proportions.

The Cause of the Great Depression - Day 1 of 7 - Many like to blame the stock market crash of October 19, 1929, as the cause of the Great Depression.  It wasn't.  It was just the triggering event. 

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