-- Posted Thursday, 6 November 2008 | Digg This Article
| Source: GoldSeek.com
George Ure of UrbanSurvial.com says that it seems that "everyone's coming down with Ure's Disease", which has the symptoms of an "onset of sudden sobriety and the realization that there really may be nowhere to hide."
This "nowhere to hide" thing reminds me that it is time to look into the Mogambo Mailbag, where we find such delights as envelopes with the words "Last Notice!" emblazoned in red from bill collectors ("See you in court, deadbeat!") and occasionally one from an actual reader of my stupid Mogambo Guru newsletter, whose comments mostly run along the same lines ("Are you being stupid on purpose? What in the hell is wrong with you, moron?")
But occasionally, as in "sometimes to rarely", there is a nice email from a reader, such as this one here, where the person asks, "I followed your stupid advice and I bought gold, silver and oil, and now I have lost a lot of money, about which I am very touchy and I blame you! What can I do to pull my butt out of the fire?"
My heart goes out to them for their loss, and naturally, since they are readers of the MoGu, I know that there is something very, very wrong with him or her, or "it", and I take special care to be kind and supportive.
So I politely answer, "Who the hell cares about you? I have gold, silver and oil, too, and I have lost my butt here! Now I'll never be able to get away from my job, my family and my creditors! So leave me alone, you whining little moron!"
In fact, I spend a lot of time sulking about my losses and writing hate mail to those people that are responsible - namely Alan Greenspan, the worthless moron who was the chairman of the Federal Reserve from 1987 to 2006 and whose insanely irresponsible monetary theories produced the stock market bubble that is now bursting, the housing bubble that is bursting, the bond market bubble which is getting ready to burst and the bubble in the size of government that is expanding and expanding.
This horror again reminds me of Ure's Disease, which is clinically described above as "the onset of sudden sobriety and the realization that there really may be nowhere to hide", which is why gold always rises at the realization that there truly is "nowhere to hide" except in gold (and silver), as everything else is down as much, or more!
And if you are thinking, "What about stocks, which my financial planner says go up at an average of (including dividends) some astronomical rate, such as 8%!", then you are coming to the right place if you are looking to have somebody disabuse you of that notion by yelling at you so damned loud that you can feel little disgusting drops of Mad Mogambo Spittle (MMS) hitting you in the eye and flying in your mouth that is hanging open in stunned stupefaction at my vicious personal surprise attack.
Well, I can see from the look on your face that you are, in fact, NOT looking for that, and so instead of me risking a stroke from attacking you so loudly and vehemently, I will take the easy way out and present the Chart of the Day from chartoftheday.com, which is "the Dow adjusted for inflation since 1925."
They remark, "There are several points of interest. For one, when adjusted for inflation, the bear market that concluded in the early 1980s was almost as severe as the one that concluded in the early 1930s." Yikes! As big as the Great Depression!
Then I remember that this is 1980 they are talking about, and so to keep me from yawning and my attention from wandering, they say that this has significance to me, as "the inflation-adjusted Dow is now less than double where it was in 1929 and trades a mere 29% above its 1966 peak." Hahaha! They are right! Nice investing there, Mister and Miz America!
Naturally, I think that the dollar has lost a lot of its purchasing power since 1930, and for stock prices to be only doubled since then means that investing in the stock market has been a real loser. According to the government itself (which has every incentive to obfuscate and bend the truth) admitting as much at its data.bls.gov site, we find it takes $13.10 to buy what a dollar bought in 1930! Hahaha! Your stock investments went up 100 percent, but less after taxes, fees and expenses, while things cost 1,310% more? Hahahaha! What kind of idiotic investing you call that? Hahahaha!
Chartoftheday.com agrees: "Not that spectacular of a performance considering the time frames involved", which I point out is especially important considering that this "zero real gain" ignores the fact that this is about the Dow in terms of purchasing power, but we live, and are taxed, in the other "real" world where money is gained and taxed in the nominal sense, as in strict "dollars and cents", where "sense" rhymes with "cents", hopefully creating a lasting impression in your mind so that one day, if asked if you remember The Mogambo, you can say, "Yeah! Didn't he once rhyme 'sense' with 'cents'? Which reminds me… Wasn't he also the guy who was always ragging on people to buy gold, silver and oil, and when they didn't, he would call them names and tell them how stupid they were?"
David Morgan of silver-investor.com is apparently, like most people, horrified to think that he would remember me at all, and hurriedly gets back to the topic of the stock market, and cites a report that it is not just him and me, but a lot of people are noticing that "The S&P 500 Index is on track to have its worst decade performance since the Great Depression!"
The importance of this, of course, is Mr. Morgan's intelligent and highly-enlightened use of the all-important exclamation point at the end of his sentence, which he obviously uses to indicate particular emphasis because it is important, and I would think it is Mighty, Mighty Important (MMI) to the morons of the world who still think that everyone can ride the "road to riches" by investing in the stock market over the long term! Hahahaha!
Gold and silver, on the other hand, are tried and true, and always have been, where nothing else was, and that is why intelligent people are buying the hell out of it and, once again, the majority is wrong! Hahaha!
Hey! This investing stuff is easy! Whee!
P.S. To get The Daily Reckoning sent directly to your inbox, sign up for our free email newsletter, or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.
Editor's Note: Richard Daughty is general partner and COO for Smith Consultant Group, serving the financial and medical communities, and the editor of The Mogambo Guru economic newsletter - an avocational exercise to heap disrespect on those who desperately deserve it.
The Mogambo Guru is quoted frequently in Barron's, The Daily Reckoning and other fine publications. Click here to visit the Mogambo archive page.
-- Posted Thursday, 6 November 2008 | Digg This Article | Source: GoldSeek.com
