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This business makes a lot of money during inflation...

 
Anonymous Coward
User ID: 814465
United States
01/18/2010 09:54 AM
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This business makes a lot of money during inflation...
This business makes a lot of money during inflation...

[link to www.thedailycrux.com]

And ever since we saw the Fed turn up the presses in the fall of 2008, we knew it was only a matter of time before the economy boomed, prices soared, and our creditors began to question the legitimacy of the dollar as the world's currency.

Intel's results today should cause even the most cross-eyed deflationist to re-examine his premise: Intel's fourth-quarter profit soared 10-fold this year and revenue jumped 28%. Gross profit margin hit an all-time high of 65%. My friends, business is booming in certain core industries and prices are rising – fast.

What companies make a lot of money during periods of high inflation? Banks. To save the banks, the government is going to sacrifice the U.S. dollar. So if I'm right about a big, looming inflation, then you'd expect to see outrageous profits coming from U.S. banks. The best-run U.S. bank, JPMorgan, did even better in the fourth-quarter than Intel. It quadrupled its fourth-quarter earnings to $3.3 billion. The majority of earnings, $1.9 billion, came from the firm's investment banking division.
Anonymous Coward (OP)
User ID: 814465
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01/18/2010 09:54 AM
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Re: This business makes a lot of money during inflation...
doesnt mean it will last

Look beneath the surface of the so-called recovery and you'll see enough trouble brewing to make the subprime market meltdown of 2008 "look like a walk in the park."

That's not just my opinion. That's the conclusion from RealtyTrac, the nation's largest foreclosure tracking firm.

We just survived the worst years in history for foreclosures, but we may not be so lucky in 2010.

One Federal Reserve member just reported that commercial real estate losses could reach 45% this year. That means $1.54 trillion in commercial loans could default, sinking the markets and plunging the economy back into recession.

But there's more. Option adjustable rate mortgages are teetering on the edge of the abyss, with $29 billion recast higher at the end of 2009, followed by another $67 billion in 2010. In fact, Barclays Capital says, "We expect 81% of the option ARMs originated in 2007 to default."

Yet those headlines are buried while Wall Street blares out about corporate earnings that "are not as bad as expected" and "lower job loss numbers" that don't feel very low to me at roughly half a million per month.

And so unsuspecting investors are grabbing up cheap stocks, spurred on by Wall Street, and giddy with thoughts of a new bull market ahead.

But you're about to get a rude -- and costly -- surprise. If you continue down the path Wall Street is leading you on you could lose half your net worth.
Anonymous Coward
User ID: 855814
United States
01/18/2010 09:56 AM
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Re: This business makes a lot of money during inflation...
In the 90's the most successful division at Microsoft was the "Finance" department because they just kept putting cash back into stock.
Anonymous Coward
User ID: 868025
Brazil
01/18/2010 10:02 AM
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Re: This business makes a lot of money during inflation...
ohappy

All is well! All is well!
Anonymous Coward
User ID: 865398
Mexico
01/18/2010 10:09 AM
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Re: This business makes a lot of money during inflation...
Happy times are ahead.

American can be proud and boastful. So, invade more countries for your corporations to profit. I am sure you will go along with the government and support your military...

All is well. Let's keep on, keeping on. 5a

Let's fuck everybody else, as long as we do fine. 5a





GLP