Uncle Sam and John Bull

We're in it together (picture source)

Financial Sense yesterday: Adrian Ash points out that the UK has problems similar to America's, and draws comparisons with the economic situation of the 1970s. That word "stagflation" is being spoken again. He's another gold bug.

Frank Barbera looks at the ongoing credit crunch, with Structured Investment Vehicles looking for a rollover investment of £100 billion within the next few months, just as the market in commercial paper is drying up:

Bottom Line: It is simply a long way from over. So what do investors do while trying to make an honest buck? The answer is to expect more turmoil and periodic severe bouts of selling pressure rippling through the financial markets. We are looking at the battle between monetary reflation and debt deflation playing out on the grand stage.

Other bears look at the Thirties for their model. We have an advantage, in that we have the 70s and the 30s to learn from; they didn't have themselves in their history books. As Mark Twain said, "The past does not repeat itself, but it rhymes."

( Picture source)

Merrill in a panic

(Picture source)

Charles Merrill, a relation of the Merrill Lynch founder, has become a gold squirrel.

More surprises from Warren Buffett

Warren Buffett wants to pay more tax, according to NBC today.

And he doesn't have an accountant! (How many enemies can you make in one day?)

Money vs The People

(Picture source)

Money can improve happiness, below a certain income level; but above that point, the relationship is not so clear. And maybe there are distinctions between money, investments and wealth...

In Financial Sense yesterday, Robert McHugh comments:

When the Master Planners devalued the dollar over the past five years, they raised the cost of living for everyone. The Middle Class is getting annihilated from this silent event. Incomes are not keeping up. This was done because this administration “equates stock market success with economic success and has directed their efforts to drive up equities at literally any cost,” to quote one of our subscribers.

...but Tony Allison looks forward to a more energy-efficient future:

Change is seldom welcomed by most humans, but it can often bring about positive results. It is impossible to know what year the effects of peak oil production will barge into our living rooms, but change is on the way. The adjustment period to a permanent supply crunch will likely be very difficult, but some effects may be beneficial. For example, we could see a re-birth in local farming and manufacturing, as food and industrial products become exceedingly expensive to transport. We would see more public transit, more freight train transportation, more bicycles, more energy efficiencies of all kinds working their way into society.

Buffett goes South and East

MoneyNews.com (Friday) reports on Warren Buffett's investments in Brazil and South Korea. Apparently the great man has made a pile in Brazilian currency but is now looking to switch to their bonds.

Abroad elsewhere, he's looking for high-dividend companies - a combination of the standard value investing formula and hedging against the dollar.

Every Picture Tells A Story

Dow Jones Industrial Average, 1960 - 2007 (source: StockCharts.com)

My brother sent me this. Just imagine what it would look like if the chart wasn't using a logarithmic scale. Which way from here?

Vote early, vote often

... as the Irish used to say. One more day to go on the Wall of Worry poll and the optimists are winning. Can this be so? If you have votes to cast, prepare to cast them now.