That enormous confidence in Coolidge Prosperity which had lifted the businessman to a new preeminence in American life and had persuaded innumerable men and women to gamble their savings away in Florida real estate had also carried the prices of common stocks far upward since 1924, until they had reached what many hard-headed financiers considered alarming levels.

 

The speculative fever had been intensified by the action of the Federal Reserve System in lowering the rediscount rate from 4 per cent to 3’/2 per cent in August, 1927, and purchasing Government securities in the open market……… Furthermore, American business was beginning to lose headway; the lowering of money rates might stimulate it. But the lowering of money rates also stimulated the stock market. The bull party in Wall Street had been still further encouraged by the remarkable solicitude of President Coolidge and Secretary Mellon, who whenever confidence showed signs of waning came out with opportunely reassuring statements which at once sent prices upward again. In January 1928, the President had actually taken the altogether unprecedented step of publicly stating that he did not consider brokers’ loans too high, thus apparently giving White House sponsorship to the very inflation which was worrying the sober minds of the financial community

 

What on earth was happening? Wasn’t business bad, and credit inflated, and the stock-price level dangerously high? Was the market going crazy? Suppose all these madmen who insisted on buying stocks at advancing prices tried to sell at the same moment! Canny investors, reading of the wild advance in Radio, felt much as did the forecasters of Moody’s Investors Service a few days later: the practical question, they said, was “how long the opportunity to sell at the top will remain.”

 

What was actually happening was that a group of powerful speculators with fortunes made in the automobile business and in the grain markets and in the earlier days of the bull market in stocks-men like W. C. Durant and Arthur Cutten and the Fisher Brothers and John J. Raskobwere buying in unparalleled volume. They thought that business was due to come out of its doldrums. They knew that with Ford production delayed, the General Motors Corporation was likely to have a big year. They knew that the Radio Corporation had been consolidating its position and was now ready to make more money than it had ever made before, and that as scientific discovery followed discovery, the future possibilities of the biggest radio company were exciting. Automobiles and radios-these were the two most characteristic products of the decade of confident mass production, the brightest flowers of Coolidge Prosper- ity: they held a ready-made appeal to the speculative imagination. The big bull operators knew, too, that thousands of speculators had been selling stocks short in the expectation of a collapse in the market, would continue to sell short, and could be forced to repurchase if prices were driven relentlessly up. And finally, they knew their American public. It could not resist the appeal of a surging market. It had an altogether normal desire to get rich quick, and it was ready to believe anything about the golden future of American business. If stocks started upward the public would buy, no matter what the forecasters said, no matter how obscure was the business prospect. They were right. The public bought.

we’ll see if this time is different…the stock indexes are grudgingly giving up a few points but look like they want to explode higher as soon as the all clear siren sounds. On  the other hand, stock market corrections often start as routine pullbacks that cause no alarm bells to ring…let’s see if any of this N. Korea business  has legs.

…….. Still here friends

Would be nice to see a “meaningful” rally in gold and silver,  not just a “puff” ’cause of  Korea

Onward Pilgrims

Winedoc

http://www.zerohedge.com/news/2017-08-08/volcker-rule-london-whale-dear-big-media-get-clue

An American Icon… with it’s Mars light swinging up front
http://www.railpictures.net/photo/625348/

Apparently I have “Cognitive Privilege” I should feel guilty about.

http://www.zerohedge.com/news/2017-08-08/its-not-fair-smart-people-need-check-their-cognitive-privilege

Dick Cheney in 2002: “There is no doubt that Saddam Hussein has weapons of mass destruction”

Dick Cheney’s Biggest Lie

Plenty of the best-informed intelligence sources were certain the WMDs were a fantasy. French intelligence knew it; so did Russia and Germany. The strongest human intelligence collected by the CIA—which secretly came from the Iraqi foreign minister, Naji Sabri, and Iraq’s head of intelligence, Tahir Jalil Habbush al-Tikriti—was detailed, correct and ignored. Instead, the administration built its case on Rafid Ahmed Alwan al-Janabi (the infamous “Curveball,” a man German intelligence had warned the CIA was unreliable) and Muhammad Harith, a former Iraqi intelligence officer whose information was dismissed by British intelligence as a fabrication 10 months before the war began.

http://www.newsweek.com/2015/05/29/dick-cheneys-biggest-lie-333097.html

Comment:

I myself will never ever believe anything, anymore anyway anyhow if it comes from the media and does not make any sense. Everything we hear and see is somebody’s special interest advertisement for something they want to sell, or make people think.

The little Fat Man with the funky haircut is simply garnering the worlds attention in an attempt to shake down the World Powers for a few hundred Billion in Sit Down, Shut Up, money before the 2018 Winter Olympic Games which are to be held in Seoul S. Korea in February

Or, Lil Kim is simply batcrap crazy, and does not understand he cannot push Trumps buttons. Failing to recognize and understand Trump is not a politician, and will drop one on his head may be a major malfunction of the Lil Tyrant. Could turn out to be good for gold though. 🙂

Hmm…seems like it might be more Kabuki theatre but I guess if it bluffs gold up a few bucks then whatever.

I do agree with the DOW going up 5K points though. War is great for markets.

If they do actually start shooting it will be to cover up whatever financial chaos the US has engineered.

Same as it always was.

Re Notes

I seem to remember a while back, that when someone checked out the ‘Indirects’, because they were taking such huge chunks, nearly all of it was a PO Box in Brussels….aka the Fed.

Been away for a few days …coming back is v depressing…the control is total…..but at some point that very control, will be the cause of total chaos.

Tenants That’s interesting. I’ll have to look into it.

“Stellar” 3 Year Auction: Highest Bid To Cover Since 2015

Re U of Georgia

I strongly suggest none of their pupils ever visit Singapore, in case they transgress. As I’m not sure they could handle the local police….let alone any jail time, or God forbid a caning !!!!

Bison Gold Announces Signing of Arrangement Agreement

Toronto, Ontario–(Newsfile Corp. – August 8, 2017) – Bison Gold Resources Inc. (TSXV: BGE) (“Bison” or the “Company”) announces that it has entered into a definitive arrangement agreement with Klondex Mines Ltd. (“Klondex”) effective August 7th, 2017 (the “Arrangement Agreement”) whereby Klondex has agreed to acquire, by way of a court-approved plan of arrangement in accordance with the Business Corporations Act (Ontario), all of the issued and outstanding common shares of Bison (“Bison Shares”) in exchange for cash or common shares in the capital of Klondex (the “Klondex Shares”), or a combination of cash and Klondex Shares, as further described below (the “Transaction”).

https://www.newsfilecorp.com/release/28343/Bison-Gold-Announces-Signing-of-Arrangement-Agreement#.WYnTl8KWw5t

In Virginia you title a house as “Tenants by the entirety ” so the house cant be divided to settle debts of one ..each tenant owns the whole house .

that’s far too risky, the paint might take longer than 10 hrs to dry…a dn SM day is much less likely.

Lol

Cheers.

Same action day in day out.

and of course Dollar getting bid..how did I miss that ???

Reckon I will go away again and lie in the fast lane of a motorway…makes more sense than to expect Janet to ‘Allow’ a down day in the SM.

So … someone who works hard in the class and knows the subject thoroughly could receive the same marks as some poor lazy, triggered soul who doesn’t know diddly?

Yeah that makes sense!

Representatives from South Africa’s National Union of Mineworkers marched to AngloGold Ashanti’s (JSE:ANG) head office in Johannesburg to protest against the company’s decision to cut 8,500 jobs at its Carletonville operation.

Concerned about the steps taken by the world’s third-biggest gold producer, who said it is uneconomical to mine Carletonville’s shafts, and by Bokoni Platinum Mine’s plan to cut over 2,600 permanent jobs by next month, NUM’s president Piet Matosa is threatening with a general strike in coming days.

Sibanye Gold also announced it will restructure operations at its Cooke and Beatrix mines, a move that could affect 7,400 of its employees and 3,000 contractors.

Despite the fact that Mineral Resources Minister Mosebenzi Zwane has been implicated in the Gupta family scandal related to undue political influence in the South African government by the Oakbay owners, the labour movement wants both him and President Jacob Zuma to intervene as soon as possible.

more http://www.mining.com/21000-mining-jobs-line-south-africa/

China Threatens “Small Scale Military Operation” To Remove India From Bhutan Border

http://www.zerohedge.com/news/2017-08-07/china-threatens-small-scale-military-operation-remove-india-bhutan-border