Jack Crooks

Only Gold Is Winning the Ugly Contest

By Jack Crooks, Editor

Gold did the deed. The precious metal closed over the US$1,000 mark on Friday as the Senate Banking Committee Chairman Chris Dodd sideswiped the dollar.

Mr. Dodd, a man who pontificates on any and every subject under the sun and never lets real knowledge of a particular subject area stand between him and the nearest microphone decided to try out the N word — nationalization! Traders viciously dumped the dollar on Dodd’s “deliberation.” 

Four Reasons Why Currencies Also Beat Out Stocks in My Book

By Sean Hyman, Currency Analyst

Even some of the biggest industry players in Wall Street overlook a few simple truths that make currency trading infinitely superior to stock trading. For example…

European Banks Are Leveraged 60-to-1?!

By Chuck Butler, editor

I have to apologize right here, right now, that I contradicted something I said and my friend John Mauldin said yesterday. (I didn’t mean to and it shows what happens when you write pre-5 a.m.)

I thought that the U.S. losses were larger than those in Europe (overall, both East and West)... But upon further review, I see that is NOT the case…

Oh, Woe Is the Euro – at Least For Now

By Chuck Butler, Editor

It looks like the euro is destined to suffer for the time being.

This time, you can blame the euro’s suffering on the rot on the vine in the Eastern European countries. These Eastern European countries are taking on water from bad loans, or loans gone bad. And of course, you know who the lender of last resort is on these loans don't you? Yes, Eurozone banks. This opens a whole new can of worms folks...

Uncle Sam Wants to Help Pay YOUR Mortgage?

By Chuck Butler, editor
Currency Capitalist

“But Which Type Of Gold Investment Should I Be Buying?”

(HINT: The Kind You Can Save $600 An Ounce On, Duh!)

Yesterday, Tim Geithner stumbled out before the press and managed to say everything - and nothing - at the same time.

Let’s start with the obvious - “The recession is putting great pressure on banks.”

Really, Tim? We had no idea.

By saying nothing of substance, Geithner confirmed Wall Street’s worst fears: that Washington doesn’t understand the fix we’re in. (And even if they did - could they do a darn thing about it?)

The Case for Gold Confiscation

Very few people alive can remember the great “gold grab” of 1933.

That’s when President Franklin Roosevelt declared gold ownership to be illegal. Once he forced enough Americans to turn over their gold - in exchange for paper money - he revalued the price of the yellow metal from US$20.67 to US$35 an ounce.

What a rip-off!

That meant everyone was left - in the heart of the Depression, mind you - holding dollars that were worth a fraction of their former value.

They're Doing the Right Thing (for Now…)

Make no mistake; I don’t normally advocate government intervention.

But these aren’t normal times. Without government intervention, the house of credit and leverage would have (completely) tumbled down……resulting in massive bankruptcies and a total collapse of the banking system and the global economy.

Thanks to their intervention (however misguided at times) I believe we’ll avoid another Great Depression.

But the Feds’ track record is far from perfect.

Why Are Some Currencies Immune to Job Losses and Some Aren’t?

By Sean Hyman, Currency Analyst

Good question, right? Especially right now as unemployment rises all over the world…

At last glance, Canada has 6.6% unemployment, the U.S. has 7.2% unemployment, the U.K. has 6.1% unemployment, and Japan has 4.1% unemployment.

Only Switzerland has managed to keep unemployment relatively low at 2.8%. (Anyone up for moving to Switzerland? Great skiing and employment – sounds good to me.)

Yes, a Strong Currency Can Kill an Economy Just Look at the Japanese Yen…

By Sean Hyman, Currency Analyst

Common sense says a strong currency should help a country right? Well, not always.

It actually depends on whether you import or export most of your goods. If your country is a net exporter of goods, then a strong currency could help your economy. But if your country is a net importer of goods, then a strong currency could wreak havoc on your economy.