Fools Gold
The stock market has been in an up trend for more than a year. Almost everyone is feeling good and many believe we are back in the old bull market with the previous high of the Dow Jones Industrial Average just about to be broken.
The American College to Award its Highest Honor, The Huebner Gold Medal, to Reginald N. Rabjohns, CLU®, ChFC®
The American College recently selected Reginald N. Rabjohns, CLU®, ChFC®, President, Rabjohns Financial Group, Inc., and Managing Partner, New England Financial, to receive its highest honor, the Huebner Gold Medal. The award ceremony honoring this year's recipients will take place during the President's Circle Dinner aboard the USS Missouri in Pearl Harbor at The College's 2008 Knowledge Summit in Honolulu, HI on November 20, 2008. For more information on joining the President's Circle and attending the dinner honoring Rabjohns aboard the USS Missouri, please contact Mary Phelan at The American College at 610-526-1432.
Mexican Law Firm Eliminates Billing Conflicts of Interest: 'I've Struck Gold With May Cruz Consultores' Says Imperial
Chemical Indu
The prevailing system used by law firms to charge for legal work has long been considered the scourge of the legal profession. The practice of billing clients by the hour for work has been roundly criticized, both by clients, who see it as a conflict of interest and a disincentive to efficiency, and lawyers, who feel pressure to bill more and more hours. Yet despite nearly uniform disdain for the practice, few international law firms have voluntarily abandoned it.
Magic Cellar Is The Only Animated Television Series to Receive Gold At The New York Festivals
Magic Cellar, the first animated series to be based on African culture, was awarded Gold and Silver World Medals at the 50th New York Festivals. Magic Cellar was the only animated television series in the world across all categories to receive a Gold World Medal.
Receiving the award in New York, NY on February 2, 2007 was Ottawa, Canada-based Firdaus Kharas, Director and Executive Producer of Magic Cellar. Mr. Kharas commented, "The fact that Magic Cellar was the only animated series in the world to be honored with a Gold World Medal is remarkable and humbling. I see the award at such an international competition as a testament to the truly cross-cultural nature of the series. While it showcases African culture, it brings univer...
Hardness of Gold: Misconceptions!
The Scottish Heirloom Company, like most jewellery manufacturers, produces our product range in Sterling Silver, 10 kt (karat), 14kt and 18kt gold.When choosing items in gold, customers are often reluctant to choose the higher karats of gold.
Tequila Don Valente Tiquilito Gold Becomes House Margarita at Red's Patio Grill and Strong's Everyday Tavern
Red's Patio Grill (Plano, TX) and Strong's Everyday Tavern (Dallas, TX) have further improved the high quality of the dining experience by upgrading their well tequila to Don Valente Tiquilito Gold. They are very pleased to announce that Don Valente Tiquilito Gold will be the standard tequila used for both their frozen and 'on the rocks' margaritas. Both Red's and Strong's use only fresh citrus juices in their margaritas which when mixed with Tiquilito Gold makes an incredibly smooth and great tasting margarita.
The American College to Award Its Highest Honor, the Huebner Gold Medal, to William H. Beckley, CLU, ChFC, MSFS
The American College, the nation's leading educator of financial service professionals, recently selected William H. Beckley, CLU®, ChFC®, MSFS, Executive Vice President, Agencies with Northwestern Mutual to receive its highest honor, the Huebner Gold Medal. The medal has been awarded annually since 1975 and honors those special few individuals whose support of The College and its programs, and whose dedication to education and professionalism, have been of particular meaning to the mission and progress of the institution. The award ceremony honoring this year's recipients will take place during the President's Circle dinner at the Kennedy Space Center at The College's 2007 Knowledge Summit in Orlando, FL on November 15, 2007. For more i...
Gold Medal Wine Club Honored for Value and Quality
Gold Medal Wine Club selections were recently recognized by wine experts in the Wall Street Journal as among the best of those sampled.
Americans Earn Quick Cash by Selling Gold Jewelry to CashforGoldUSA.com
As the economy continues to struggle one company is helping Americans turn their old, unwanted or broken gold jewelry into hard cash. CashforGoldUSA.com offers instant payments to consumers looking to earn cash quickly.
Gold Mining
Mining Gold is hard work you know? There are many people in the US to this day who still mine for gold. Did you know that in many countries people have protested mines, gold and silver are easy ones to protest because it is associated with greed as those minerals are also considered legal tender.
Truth About Gold Mines
Since your childhood you have probably seen people panning for gold and wondered if they ever struck it rich. Using only a pan and water, and of course some magical stream, you may have thought a few establish gold mines of considerable substance.
Universal Coin & Bullion Helps Fill Blue Santa's Bag in Beaumont Texas
A truckload of toys from the Administrative Staff of Universal Coin & Bullion helped Blue Santa fill his toy list for 66 special children in Beaumont, Texas. Blue Santa is an annual tradition carried on by the Beaumont Police Force.
EcomNets Attains Gold Certified Partner Status in Microsoft Partner Program
EcomNets further distinguishes itself by earning a Microsoft competency in mobility and security solutions.
WTC Memorial Foundation $100,000 Donation from Universal Coin & Bullion, LTD
Universal Coin and Bullion recognizes that building a lasting memorial at the World Trade Center site is about contributing to our nation's history. After the events of September 11th shook America, a group was started to design and build a fitting memorial to all of those who lost their lives. Universal Coin & Bullion is proud to be a part of such an endeavor.
She Who Has the Gold...
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The Price of Gold and CDO Structured Products
Years and years of monetary inflation have completely desensitized us to risk. From a national, corporate or even individual level, the availability of cheap debt has conditioned us to borrow without abandon.
And nowhere has the debt binge been more apparent than in the housing market. Low mortgage rates have been a boon for homebuyers and created an insatiable demand for structured products from investors hungry for yield. Eager to oblige, Wall Street has been having a feast. Making loans to homebuyers then packaging them up and selling them to pension funds, hedge funds and large insurers. The fees have been MASSIVE.
When you package up individual loans into a product (called a CDO but with many name variations) you are able to pick and choose the exact payout you want to achieve. Add in some AAA rated mortgages, mix in BBB+ paper and stir in Toxic Junk bonds (bound to default) and voil? you have an instrument with very specific yields and cash flows.
Ofcourse there are bands as to what constitutes for example BBB- Investment Grade Bond. And all the structurer has to do is use the loosest defined Bond to comply. Compliance is overseen by ratings agencies that help banks put the products together. It?s a cozy lucrative arrangement and its complicated stuff. One of the highest paying jobs on Wall Street is for Correlation Traders. Quants who make sure the underlying paper behave according to their promise.
And then there?s the leverage. And boy is there leverage! Payouts can be magnified by up to 10x using synthetics or derivatives that link to even more mortgage pools.
The party was going great until interest rates started to rise and housing began to fall.
Chart 1 - Centex homebuilder and 10 year Bonds (bottom) breaking support - CDO reaction 1 week later
Last week the financial world was awoken by the harsh reality that hey, maybe these mortgages are not going to perform as originally planned. Maybe the risk of default is a lot higher than originally thought GULP! Bear Sterns announced a $3.2Bn ?loan? to bail out one of its troubled hedge funds doing exactly what I detailed above.
Based on the banking indexes sharp fall on Friday, this problem may be a little more widespread than that.
Chart 2 - Banking index (top) reacting to CDO news; price of gold trending lower (bottom)
Earlier this month we detailed how higher interest rates would benefit the price of gold. That is, in the long-term the fundamentals for Gold are incredibly bright, but there will be short term pain. The reason is that Gold has been bid up along with all other assets under the current wave of liquidity. A repricing of CDO risk would likely curtail the issuance of these instruments and cause a sharp contraction in liquidity with a commensurate drop in ALL asset classes ? if last week is an indication, the speed of this deflation will be mind blowing and completely overwhelming. However, Gold?s Credit rating has been and always will remain sterling. When investors realize the incredible DANGER in front of us, they will return to Gold in droves!
More commentary and stock picks follow for subscribers...
keywords: price of gold, cdo, structured products
If you would like to view the above charts and learn more about successful investing in mining and energy stocks please visit me at: http://blog.goldandoilstocks.com/2007/06/price-of-gold-and-cdo-structured.html
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