Comments on: McCoach: Bank Failure? Buy This Miner

By: Doug

Doug — Sat, 26 Jul 2008 17:02:29 +0000

Greg McCoach has just put ALL his buys on hold.
Junior miners will be the last place to be….
He recommends CEF Central Fund of Canada for exposure to Gold and Silver.
Be carefull of his newsletter Most of his stocks have b0mbed badly.
In the event of a meltdown Gold and Silver will be hit aswell before emerging from the dust THEN miners will come good after soaring PM prices…My opinion only.

By: G IMBURG

G IMBURG — Sat, 16 Feb 2008 01:53:11 +0000

A note for Brian. Derivatives is just a fancy name for options for the most part. Most markets have available options. An option gives the holder the right, but not the obligation, to exercise the right to call the underlying security away from the seller of the security. The security may be a bond, stock, or commodity. IN other words,the seller of the option is required to give the underlying instrument to the option holder, if excercised.
The alternatives are to sell the option in the traded market before the expiration date. This is the last day for delivery,and absent delivery by exercise, the option expires worthless.
Regarding your your question about the FDIC,its a huge market the banks and funds trade in heavily. Unless you could look into the trading habits of each institution that participates, The measure of wins and losses would be hard to measure.
WE had an example in the 90,s when the CFO of Orange County California threatened the municipal finances by trading the derivative market in bonds thru Merrill Lynch. Teachers,Police,fireman etc had a period where they suffered a period of not being paid.
The point is that retirement plans,municipalaties,and government entities trade the derivative markets to finance government activities, in addition to every hedge fund etc. I hope this gives some magnitude of not only how big this market is, but how important as well.

By: Brian

Brian — Wed, 13 Feb 2008 15:10:09 +0000

I guess Derivative Investments are not a topic that FDIC insurers want to make widely known. Weiss’s newsletter goes into it briefly by stating the amount of derivative investing by banks has gone up exponitially since there inception. And then goes on about the doom and gloom of this. Any balanced reasoning to this out there?

By: StockGumshoe

StockGumshoe — Tue, 12 Feb 2008 01:47:01 +0000

Amen to that, G.

By: G IMBURG

G IMBURG — Tue, 12 Feb 2008 00:44:20 +0000

Most of my comments come from trading forex and commodities,and these experiences have developed my trading viewpoints.I guess its the teacher in me that tries to stimulate risk management which we all should gauge before we enter the markets. I am not trying to come off as a guru,but open a few eyes to the risk factors which weigh heavy on my personal trading habits. I have been in the markets for ten years with both wins and losses, and guaging risk is the most important factor.
I always give my reasons for my thinking which is designed to stimulate the analyst in all of us. My recent suggestion on palladium was a fundamental call with a technical viewpoint which has led to my best gains, otherwise I wouldnt have posted the trade. Dont mean to be offensive. My idea is to help the readers analyze these crazy recommendations we are all exposed to on a daily basis.