Palisades Gold Radio, Released on 5/24/23
David discusses how companies often reframe their results to be more “socially acceptable”. During the tech bubble the game of earnings management evolved; analyst’s influence drove the consensus estimates down and then, when the company beat the estimates, it painted a manipulated picture of their financial standing. David explains the effect that higher rates have on the housing sector; many households are already overstretched and not prepared to pay for house payments when interest rates increase. We are beginning to return to the liar loan phase which helped cause the 2008 housing crisis with Mortgage-Backed Securities. Similarly, auto loans are also being bundled with both prime quality and riskier loans being sold to investors. The financial system is dependent on continued growth of the money supply, which drives it. However, if the increase is pulled back too quickly, the entire system can collapse, which will eventually happen. Lastly, David urges people to ignore mainstream media and do their own research.
0:00 – Introduction
0:40 – Reframing Results
10:31 – Rates & Housing Impacts
18:45 – Lending Shenanigans
24:49 – Banking Crises & Rates
29:44 – Inflation Themes & M2
44:50 – Gold & Monetary Systems
49:22 – Confidence in Miners?
56:33 – Mining Risk & Returns
57:45 – Gold & Rising Tides
1:00:00 – Putting a Pin In It
Dave Kranzler spent many years working in various Wall Street jobs. After business school, he primarily traded junk bonds for a large bank. Dave graduated from Oberlin College with majors in Economics and English and he also has an MBA from the University of Chicago, with a concentration in accounting and finance. Currently, he co-manages a precious metals and mining stock investment fund in Denver. He has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. His daily articles can be found at his site, Investment Research Dynamics.