Onboard the TransCanada – “Have you people ever run a train before?”
Sarcasm seemed appropriate. It wasn’t plainly crass or vulgar. Just mildly insulting.
The book we were later given on the train explained that the VIA Rail Canada – Canada’s passenger rail system – was inspired by Amtrak in the U.S.
This is a little like getting on a cruise line that said it drew inspiration from the Titanic.
O Canada
By then we hardly needed any explanation. Our tickets said we were to be in Prestige Class for the journey from Toronto to Vancouver.
But there was nothing prestigious about the way we were handled.
After waiting 10 hours to board, we were invited to drag our bags along a quarter mile of platform to get to the prestige car.
By the time we got there, we expected to be asked to bend over so the staff could whack us with a board.
The train – scheduled to leave at 10 p.m. on Saturday night – did not push off until 9 a.m. the following day. We had gotten a call advising us get to the station “no later than 6 p.m.” so we wouldn’t miss it!
We fulfilled our part of the deal. Alas, the Canuck Amtrak failed. Rescheduled for 7 a.m., it was then rescheduled again for 7:30 a.m… and then 8 a.m…
“The train got in late to the station. Then we had to wait to find a new engineer,” was the word we got when we asked about it.
“People have been running trains for a long time,” we began a lecture.
“There is nothing unpredictable about it. A train is a big object. You should know where it is. Then it’s a simple matter to compute when it will arrive. You know – distance divided by speed…”
We felt an elbow. It was Elizabeth telling us to knock it off.
Tempted to feel sorry for ourselves, instead we said a prayer for the poor economy-class travelers. They would probably be chained to their seats and whipped with barbed wire.
But now we are rolling along. Too bad about the Wi-Fi – it doesn’t work. Nor does the mini-fridge. And the train has been backing up as much as it has been going forward.
But, heck, the staff are friendly… and the scenery is magnificent.
Beaten Down and Despised
Word comes this morning that Greek banks have reopened.
Bank customers have been separated from their money for three weeks. Even now, they are allowed only brief conjugal visits. They may take out only up to €420 ($456) a week.
The Greek stock market has reopened, too. But without Wi-Fi, we have not been able to get an update.
Greek stocks, as you might imagine, have gotten beaten harder than a traveler on the Canadian train system.
They are down as much as 95% from their 2007 high. The average stock listed in Athens sells for a little more than two times earnings. Many sell for barely a single year’s cash flow.
It’s not for us to know at what price Greek stocks should trade. But the Greeks have been around a long time. They’re probably not going away. And neither are the companies headquartered there.
And some of the biggest payoffs in the investment world have come from putting money into places no one else wanted to go.
It’s the beaten down, despised, sad sack of a market that has the greatest potential: It has nowhere to go but up.
If you had invested in the Turkish stock market in 1988, for example, today your investment would show a 1,188,047% gain.
Every dollar invested, in other words, would be worth more than $11,000.
Back in 1988, Argentina was a mess, too. If you had put your money there, you’d have a 39,297,300% gain. Had you invested $10,000, you’d now have $392,973,000.
More Drama to Come
But the drama isn’t over in Greece.
Poor Alexis Tsipras is stuck. On the one side is the hard place: Many in his coalition government are refusing to go along with the deal he just made. Heads are rolling as a result.
On the other side are the rocks of Northern Europe – especially Germany. And they are proving treacherous, too.
Tsipras’s Syriza government could be history in a few weeks. There’ll be new elections… more negotiations… more cans… more kicks… and more absurdities.
It is amazing how much nonsense is published on the subject. The mainstream press has turned it into a simpleton’s version of the kids’ movie A Bug’s Life – a struggle between Greek grasshoppers and German ants.
Readers are expected to take sides – either for the poor Greeks or against them. Most economists – most prominently Paul Krugman and Thomas Piketty – weigh in on the side of the Greeks.
They urge Germany to give the grasshoppers a break – more time… more money… and more rope.
They believe Northern European “austerity” has doomed the Greek economy to and endless depression.
But the whole show is silly. The Greeks aren’t going to start acting like ants. They aren’t going to pay back old loans… or new ones.
And lending more money to people who already owe more than they can ever hope to repay is never going to help an ailing economy.
Regards,
 |
Bill
Further Reading: What’s happening in Greece will be trifling compared to the U.S monetary catastrophe Bill sees coming.
It’s all detailed in the new presentation he’s put together. As you’ll learn, this upheaval could leave you locked out of your bank account… unable to use your credit card… or even cash a check. To find out what has Bill so worried, go here now.
Gold just fell off a cliff…
The yellow metal plunged 2.2% yesterday.
And as you can see below, at $1,106 an ounce, gold prices haven’t been this low since 2010.
There are many headwinds for gold right now. They include a strong dollar… low levels of consumer price inflation… a commodities bear market… the temporary resolution of the crisis in Greece… and news that China’s gold reserves are lower than expected.
These headwinds are reflected in today’s prices. Gold is selling at nearly 40% off its peak price of $1,900, set in August 2011.
Featured Reads
Gold Miners Have Gotten Absolutely Crushed
Gold’s woes are mild in comparison to the shellacking gold miners have been enduring. The big gold miner ETF, GDX, has lost half its value in the last 12 months – more than three times the losses for gold bullion.
A Major Risk to Stocks That Should Be on Your Radar
Since the 2008 financial crisis, central banks have forced investors to take on excessive risk. At the same time, regulatory changes have meant shrinking liquidity. This could prove to be a deadly combination for investors.
December Rate Hike Could Cause Big Spike in Yields
The Fed says it’s still on track to raise interest rates in 2015. It may want to avoid a December hike, as thinning year-end liquidity could cause a big spike in yields… which could hurt the economy and the Fed’s reputation.
Mailbag
In today’s mailbag… feedback on the latest video presentation from controversial economist and author James Dale Davidson.
I watched your buddy’s video just now. It was a LOT longer than the graphic at the bottom said it was.
That being said, he is saying exactly what you and Stansberry are saying.
Okay, you give each other more credibility. But most of the rest of us have a problem. It goes like this…
You each offer (paid) solutions to the upcoming disaster – a way to “survive and prosper.” It entails investing in certain things you say are safe. Except, most of us real world Americans are completely unable to invest in anything because we’re spending 98% of what we bring home just to survive.
You really want to help as many people as possible?
How about some free information to help people with basic survival when it hits the fan, and how to prep besides stockpiling food and trying to keep some cash on hand when we barely have any now?
You’re all very smart men. You can do this, if you decide to. I ask you to give it serious thought.
– Bud S.
Chris’ Comment: We’ve unlocked an issue of The Bill Bonner Letter that contains simple advice for ordinary Americans about how to prepare for another financial meltdown. You can access it here.
The Diary is free to read. But we charge for our investment advisories.
That said, we want to deliver as much value to our readers as possible. That’s why a basic subscription to The Bill Bonner Lettercosts $49 a year – or less than $1 a week!
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