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April 30, 2021 | What Happens When Stimulus Programs Stop?

Bob Hoye has been in investment business for some 50 years, making him one of the more experienced researchers. His historical work has been thorough providing the first recognition of the fascinating transition from speculation in commodities to speculation in financial assets. It was controversial when Bob observed that “No matter how much the Fed prints, stocks will outperform commodities”. In January 2000, the research team concluded that the Dot-Com Bubble would peak in March 2000. In early 2007, the team outlined that the credit markets would reverse in May-June 2007. They did and the stock market followed. The latest was the call in early October for the Bitcoin Bubble to complete in December. Bob’s essays and speeches on political change and on actual climate change have been widely circulated.

Central Banks wrong to keep interest rates artificially low

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Archives April 30th, 2021

Posted In: Radio


  • Michael says:

    Hi Jim and Bob. An increasing number of companies are buying bitcoin often taking on more debt on already over-leveraged balance sheets. This reminds me of the “Hail Mary Pass” employed in football. Bob, is this a reflection of their “boundless optimism” in Bitcoin or is this an “act of desperation” by over-leveraged companies and “storied” companies with no profits? My second question. Hedge funds are going heavily short the market, particularly the Nasdaq and the Russell, as they continue to short the treasury market and the USD. Bob, can we expect one last “really big” short squeeze followed by one more “higher” high before we enter the “Twilight Zone”?

  • Kathleen says:

    Hi Jim. Hi Bob. Singer/humorist Eddie Cantor was no stranger to “margin calls” even prior to the 1929 crash. He was worth one million before the crash and, after the crash, he was more than $200,000 in debt. Prophetically, Eddie recorded a faithful monologue on Tuesday, October 29, 1929. Excerpts:
    Now-a-days, when a man walks into a hotel,
    And requests a room on the 19th floor,
    The clerk asks him:
    “For sleeping, or jumping?”
    I want to give you one sure tip on the Market.
    Go out tomorrow and buy National Casket.
    You can’t go wrong.
    Personally, I shouldn’t worry about my stocks.
    I know my broker is going to carry me.
    Yes sir.
    He, and 3 other pall bearers.
    After the crash, Eddie went on to write the “Margin Song”, a.k.a. “Sucker Come Back to Me” (“after “Lover come Back to Me”). Bob, will we be singing Eddie’s “Margin Call” song latter this year?

  • Cecil says:

    Cecil here (pronounced ‘See-cil’!)

    Hi Bob:

    I’m under the impression you are in the deflationist camp? If so, what will that look like? Will we see drastic reductions in the price of things besides stocks?? Like housing, food, energy?? How much as a % do you think these areas will decline?

    I sure do find it hard to envision deflation— since the US dollar has lost over 90% of its purchasing power in the last 70 years. Will holding cash really be a good choice in this period?


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