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Yep. That we have to now cling to only equities and the SIPC as our lifeboats, and abandon trading other entire asset classes to feel safe, tells us just how sick and unstable our financial markets and systems now are.

You're missing the point. Yes, if you trade only equities and stay under the SIPC limit, you would likely get your money back--eventually--by the SIPC if your broker fails. But ask all the clients of MF Global, or any of the other failed brokerages in the past if they were happy about having...

Then he shouldn't have bothered to say anything at all here. His post raises more questions than it answers. He says there is a misunderstanding here of hypothecation, then goes on to say nothing at all to explain it properly. Meanwhile, it's not even hypothecation that is the bugaboo...

There's a very good reason economics is called the "dismal science". Ooh, someone has a 'complex quantitative model' that they say proves an economic theory? Kind of like those Nobel winning economists and their quantitative models who drove Long Term Capital Management into the hot magma core...

How exactly is taking a loss on that trade, versus what actually DID happen by executing my strategy (where I made over a 100% gain on the trade) a "better" strategy? That makes no sense whatsoever. Last time I checked, the math says that 100% gain is greater than a loss. The part you're...

But what you're missing here is that you're applying 20/20 hindsight. Of COURSE when looking back in hindsight you can say, oh the lowest rung on the ladder was the optimal entry. But in the real world, no one knows that in advance, unless you have a crystal ball or a time machine, that is...

Two parts to this query. First, I can't recall a single time I've ever done this where my initial order turned out to be the exact top or bottom. I wish I were that good. :D Second, as far as "averaging in all the way to bankruptcy", that isn't possible if you practice sound money...

And if grandma had balls she'd be grandpa. The fact is that the market isn't only open one day a year, therefore such thought experiments have no value in the real world. And I find it ironic that you're using Warren Buffett as your example, considering he himself has scaled or averaged into...

Isn't scaling in by definition averaging? So yes, I'm defending scaling/averaging down/whatever you want to call it, as it helps get a better price, since as I stated, no one knows where the exact bottom or top for an asset may be, but having a ladder of orders guarantees that you can buy at or...

Sorry, but this is pure nonsense. I'll be happy to defend scaling in, because that is how I establish ALL of my positions, to great success. Firstly, you are approaching the subject from a one size fits all perspective, which you cannot do without first knowing exactly what is the nature of...

Even if you're legit, why in the world would you want or need a prop firm if you're making multiple hundreds of percent returns every year already on your own? It makes no sense.

Assuming the government and central bank continues to deficit spend to fight the deflation and downturn, then yes, it will flip. If the government and central bank somehow found religion and decided to slash spending and tighten monetary policy, then it wouldn't be guaranteed. But given...

Answer: NONE. Keynesian policy has NEVER been shown to work in history, yet somehow inexplicably it persists, like a bad penny that just keeps coming back. I suspect it has to do with the fact that politicians and bureaucrats are more comfortable with doing it than the better options of...

Wow, those hacks are getting desperate. Let's revisit some quotes from the most "learned" and superior of formally "trained" economists, Mr. Ben Bernanke, shall we? Well, I feel all warm and fuzzy, don't you?

It is, hence my massive short position on U.S. equity markets. But there have been plenty of folks over the years who came up with all sorts of explanations as to why something can continue indefinitely, yet it never does, there is always a tipping point or turning point. This time will not be...

Again, only depending on the nature of your position and outlook.

Because all things being equal, I prefer to do most of my investing in US based assets (just a personal preference). I also take tax considerations into account when taking positions. So starting in March I progressively established a massive short position on the S&P via long dated SPY puts...

Nonetheless, at some point Japan will need to either rely more on foreign creditors or monetize debt to continue their debt spending. Whether they're at 120% or 200% or whatever statistic you wish to hold up when that occurs is beside the point. The point is that they will reach a tipping...

It most likely is, but not before we have to endure a period of deflation first.

Hey genius, I don't need to pinpoint a timeline, since I'm not investing in Japan. I'm simply telling you on a macro level what will happen, regardless of whether you believe it or not. NO ONE can pinpoint exact timelines, that is one of the parts that is always subject to change. But the...