Bill Bonner's Diary


The Fed Is Stealing from You… and You Don’t Even Know It

Nihilo ex nihilo fit. Out of nothing, nothing comes. First put forward by ancient Greek philosopher Parmenides in the 5th century BC, Thomas Aquinas and St. Augustine later used this axiom to prove that the universe needed a "first mover," to get things going. Even if the whole thing began with some kind of "Big Bang" moment, it still...

An Important Investing Lesson from the “Junk Bond King”

Michael Milken was writing in the Wall Street Journal this week. The "Junk Bond King" passed on an important lesson for investors: Beware a market heavily distorted by government intervention. Things may not be as they first seem... Milken popularized the junk-bond market in the late 1970s and early 1980s. Then he went to jail for securities and tax...

Mr. Market, Meet Mr. Trouble

Dow down 35 yesterday. Gold up slightly. A dull day on Wall Street, with investors holding onto most of Tuesday's gains. Here's another record that was broken recently... In the late 1970s, Michael Milken persuaded his boss at Drexel Burnham to let him start a high-yield bond trading department. (High-yield bonds are non-investment grade bonds that carry high default...

An Ominous Warning Sign…

Wow! Peace for our time, the media reported yesterday. The stock market celebrated with a 227 point jump in the Dow. Gold slouched away. We would have thought that every possible stock buyer had already placed his order. Where did the money come from to push the indexes even higher yesterday? It was borrowed. That's another record that has...

One of the Greatest Bargains in Stocks Today

More analysis from Chris on the situation in the Crimean Peninsula below. This is a fast-moving situation with big implications for our favorite emerging market, Russia. (Hint: We still think it's a bargain.) What we know for sure is that the news out of the region gave the markets a serious case of the heebie-jeebies. The Dow ended the...

Don’t Bet on the US Shale Oil Boom

Today, a warning about the US shale oil boom... But first, a little practical advice. You want to buy the car you want at the price you want? Don't go into a dealership. We met a man here in Aiken, South Carolina, who owns a nationwide car dealership. He explained: "This is how it works. The dealer doesn't really...

The Coming Bull Market in Gold Stocks Is Going to Be BIG

Where is Dillon, South Carolina? Surely, they have put up a monument to their hometown boy, Ben Shalom Bernanke. Or maybe it is in nearby Augusta, Georgia, where he was born? Bernanke is now an employee of policy think tank the Brookings Institute. Or a Distinguished Fellow in Residence in Economic Studies, to be precise. He’ll no doubt have...