In your face "Black Swan"!

As America decays, the USDollar's status as reserve currency degenerates further.

http://www.jsmineset.com/2015/12/19/in-your-face-black-swan/

Will $60 Oil Be The Black Swan?

http://investmentresearchdynamics.com/will-60-oil-be-the-black-swan/

Another Terrifying Black Swan Is Headed Our Way

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/25_Another_Terrifying_Black_Swan_Is_Headed_Our_Way.html

Sprott - The Frightening Black Swan Nobody Is Talking About

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/7/21_Sprott_-_The_Frightening_Black_Swan_Nobody_Is_Talking_About.html

“It’s beyond the ability of governments to deal with all of these weak countries.  There are only one of two answers:  Yes, someone could print as much money as they want.  Maybe they could print $5 trillion and say, ‘We’ll back up all of the banking systems.’”

“And then one could maybe say the problem is solved.  Of course the problem is, if they print $5 trillion, everyone knows they can’t back it up with anything.  Then you will lose confidence in the currency and you will go into hyperinflation because people will realize that real things are safer than paper things, including bonds and stocks and things like that.

So there are only two choices, they’ve got to print or there are going to be some defaults, which is the natural offspring of a Minsky moment...

“Sooner or later you have to write off the debt or you have to inflate it away.

If they inflate it away, then the reason for gold and silver to go higher will be incredible.  If they deflate it away, the need for people to take their money out of banks so the depositor doesn’t lose money becomes all that more apparent.  And where do you put that money you take out of the bank?  Well, the logical thing is to have it in gold and silver.”

“My biggest black swan, Eric, is that I think I’ll be right one day.  My worry is that one day they just shut everything down.”   They say, ‘You know what, we just can’t keep this up anymore, the whole Ponzie (scheme), we just can’t do it and we shut it down.’  All of the markets freeze, and the stocks that you are short are never allowed to go where they were. 

They might cease gold trading, in the normal sense, or maybe they will even outlaw gold trading.  But that’s my biggest worry.  Because everything else, everything that one would theorize and watch, in practical terms, all (of it) argues for gold and silver to win the day.

Is Ron Paul 2012's Black Swan?

http://www.zerohedge.com/news/ron-paul-2012s-black-swan

The Black Swan of Cairo

http://www.docstoc.com/docs/106722411/Taleb_Blyth_Foreign-Affairs_Black-Swan

Welcome to the Age of Instability

http://www.oftwominds.com/blogaug11/age-of-instability-8-11.html

Nassim Taleb on the Black Swan

This is worth twelve minutes of viewing.



http://www.youtube.com/watch?v=OVxcDgfTzuk&feature=player_embedded

Black Swan author

http://www.businessinsider.com/henry-blodget-taleb-you-fools-dont-understand-that-were-doomed-2009-8

Nassim Taleb bashes our government finance officials. I can't say I disagree with him.

Ed.: Did anybody notice the silver shoots today after my blog yesterday? I may start taking myself more seriously. :-)

In the "couda, wouda, shouda" department...

Most investors who stayed the course with DNDN yesterday, and did NOT put any stop market orders in place turned a profit, averting a total disaster by not having shares sold away to market makers looking to take out nervous retail investors.

But this was a "black swan" scenario that I did brainstorm--but did not carry out in practice, because I stupidly didn't think a bear raid of that magnitude would happen.

I could have purchased more shares cheaply by placing a good till canceled (GTC) limit buy order (usually good for 30 days) at $7.50, $10, $12.00 etc, or wherever I thought it might drop to. I actually brain stormed every scenario, even selling puts (buying at the strike price), but decided against it as I didn't think it would happen.

Another stupid non-decision on my part, because that's exactly what happened.

But to reiterate: always use limit orders, whether to buy, sell, or stop loss...always, especially in volatile markets. When implementing a stop loss order, do not tell your broker what your price is, and always use a stop limit order if you're going to put in a stop loss. A few readers of my blog have already told me this piece of advice has already saved them thousands of dollars.