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I have heard quite a bit from some of my buddies who are moving their IBs and Guaranteed IBs to new FCMs, whereby the new FCM is reneging on promises made before the IB’s assets transferred over to the new FCM.

One or two stories like this, you say misunderstanding. But several of them, some with the same FCM, and you start thinking about Bait and Switch.

Allegedly, some of the FCMs are backing away from both written and handshake deals, effectively trapping the IB in limbo with what will now be inferior service and higher costs to boot.

Has anyone else been subject to this alleged treatment?

I want to hear from every IB out there.

Email me at editor at martinrkronicle dot com.

All correspondence will be held in strict confidence.

Please email this, Tweet this, Facebook this to whoever you know.

My buddy Olivier ran this great article on gold the other day, so I thought I’d repost some of it here and provide a link to his site.

Gold is now trading at all time highs. That’s very bullish technical action. We have a confirmed ‘true bull market’. I am using the term true bull market as opposed to ‘cyclical bull market’ which is a counter trend within the primary trend of a bear market. Gold is the only market out there printing all time highs. It therefore is the one market that has the best potential for explosive moves to the upside. There is no overhead resistance, nobody has the urge to sell.

This is the perfect setting for prices to go parabolic.

Read the rest of the article at the Tischendorf Letter: Gold Price Trading At All Time Highs – Displaying True Bull Market Characteristics.

Victor Sperandeo echoed JP Morgan’s wisdom, saying “right now, gold is the only real money.”

And that feeling that you’re feeling about gold being too high…it’s the feeling you need to embrace b/c it’s telling you that gold wants to go higher. Listen closely. Make that feeling an ally.

Phil Donahue: When you see around the globe, the mal-distribution of wealth, a desperate plight of millions of people in underdeveloped countries. When you see so few “haves” and so many “have-nots.” When you see the greed and the concentration of power. Did you ever have a moment of doubt about capitalism and whether greed is a good idea to run on?

Milton Friedman: Well first of all tell me is there some society you know that doesn’t run on Greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? What is greed? Of course none of us are greedy, it’s only the other fellow who is greedy. The world runs on individuals pursuing their separate interests.

The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way.

In the only cases in which the masses have escaped from the kind of grinding poverty you’re talking about – the only cases in recorded history – are where they have had capitalism and largely free trade.

If you want to know where the masses are worst off, it’s exactly in the kinds of societies that depart from that. So that the record of history is absolutely crystal clear that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system.

Donahue: But it seems to reward not virtue as much as ability to manipulate the system…

Friedman: And what does reward virtue? You think the Communist commissar rewarded virtue? You think a Hitler rewarded virtue? You think – excuse me – if you’ll pardon me – do you think American Presidents reward virtue ?

Do they choose their appointees on the basis of the virtue of the people appointed or on the basis of their political clout ?

Is it really true that political self-interest is nobler somehow than economic self-interest ? You know, I think you’re taking a lot of things for granted. Just tell me where in the world you find these angels who are going to organize society for us ? Well, I don’t even trust you to do that.

Podcast: Play in new window | Download

We are in unprecedented times, so I thought we needed to check in with Victor Sperandeo today for some perspective.

Other blog posts mentioned in the podcast:

The Bailout Aftermath for the Euro, Gold, and S&P 500.

Was Gold Too High in Q4 2009? (GLD)

Podcast: Play in new window | Download

Mebane Faber has co-authored one of the best books on investing that the lay person can read and actually understand called The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.

The book was written with the help of Eric Richardson, President of Cambria Capital.

To pronounce his name correctly, say “Kevin.” Now change the “v” with a “b” and change the “K” with an “M” and that’s how you pronounce his name. Or you can just call him “Meb” rhymes with “web.” And “Faber” is fay-ber, not FAH-ber like the doom, gloomboomdoom dude, Marc Faber.

Meb also keeps a very insightful blog called World Beta: Engineering Targeted Returns and Risk which I recommend.

Martin Kronicle

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Gold Could Go Parabolic

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Ivy Portfolio Man Mebane Faber & His World Beta Blog

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