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2005 - The Year in Review

The Daily Reckoning: Weekend Edition
December 31, 2005 - January 1, 2006
Baltimore, Maryland
by Kate Incontrera

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MARKET REVIEW: 2005 - THE YEAR IN REVIEW

Well, it's that time of year again. Time to look back one last time before
hopping into the New Year - and while sifting through 12 months of DR
issues; we realized that the American consumer dominated our thoughts in
2005.

Whether they are buying million dollar homes, or $300 flip-flops, it's
clear that Americans like to spend, spend, spend - and they believe that
the flow of easy money is never-ending.

"All of a sudden, we felt the same odd sensation that we recall from the
late '90s...the fin de bubble feeling... that too many people were
enjoying themselves too much," Bill Bonner wrote in late June of this
year.

"We sat down at a sidewalk cafe where you had to serve yourself. The two
of us each had a salad and a glass of white wine. The bill came to 26
pounds - or nearly $50. Our modest bachelor pad in a nearby building costs
over $3,000 per month. Elizabeth is looking for an apartment; she believes
it will cost nearly $15,000 per month to move the whole family to London.
Where do people get so much money?

"But that too is a typical fin de bubble hallucination - that money will
always be there when you need it."

You can read this whole essay - Fin de Bubble, 2005 - along with eleven
others we've selected to mark the passing of 2005. The range of topics is
wide: democracy in Iraq...energy concerns...Hurricane
Katrina...empire...the best of the Daily Reckoning has got it all. You can
find the entire list below. In the meantime:

We raise our glass to you, dear reader, and to a New Year filled with
health and happiness!

Kate Incontrera
The Daily Reckoning

P.S. This is your final reminder...if you haven't secured your spot in the
Agora Financial Reserve yet, you need to hurry - you only have until
January 1, 2006. Don't pass up this opportunity...by becoming a Reserve
member; you will have access to all of our services and advisories and any
special report we publish for life! Don't let the best offer of 2005 pass
you by...

The Reserve - Only 1 Day Left!
http://www1.youreletters.com/t/321752/12296005/782138/0/

P.P.S. Don't worry - we didn't spend all of our time focusing on the past
year...the bright minds that make up Agora Financial have put their
collective heads together and made 11 predictions for 2006. You can get
the full report here:

Financial Predictions for 2006
http://www1.youreletters.com/t/321752/12296005/782919/0/

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THIS YEAR in THE DAILY RECKONING: You wrote in - we listened. The essays
below touched a nerve for many of our readers, and whether you thought
they were insightful, entertaining or controversial, we have them all
here...

01/31/05 A FREE LUNCH ON EASY STREET
by The Mogambo Guru

"The lesson seems to be that a country and everyone in it cannot
continually borrow and spend their way to prosperity, no matter how many
Congressional buttheads say that they can. But you can borrow and
spend..."
http://dailyreckoning.com/Issues/2005/013105.html

02/04/05 THE STAIN OF DEMOCRACY
by Bill Bonner

"They are not necessarily any better than those chosen by other means -
but at least the regime change is achieved without violence. That is the
progress of politics of the last three centuries: force is replaced by
fraud."
http://dailyreckoning.com/Issues/2005/020405.html

03/09/05 THE DRAGON IS RAVENOUS
by Justice Litle

"While food is necessary for survival, energy is necessary for
growth...and no country is growing at a faster clip than China. Their
demand for energy increases everyday, and we explore their strategies to
ensure energy security."
http://dailyreckoning.com/Issues/2005/DR030905.html

03/23/05 PUTTING YOUR ASSETS ON THE LINE
by Marc Faber

"Millions of Americans have been viewing their humble abodes as their own,
personal ATM. Marc Faber wonders when people will realize that they
shouldn't have everything riding on their household assets..."
http://dailyreckoning.com/Issues/2005/DR032305.html

04/12/05 THE THREE AMERICAN VICES
by Mark Skousen

"Americans take pride in their workaholic tendencies and their desire to
succeed at all costs...but a Chinese philosopher asserts that this way of
life will only be successful in working yourself into an early grave."
http://dailyreckoning.com/Issues/2005/DR041205.html

04/23/05 A FAILED INTERVENTION: A MORALITY PLAY
by The World Famous DR Playwrights

"World Exclusive! The first play ever to be published on the housing
bubble. The scene opens in Cafe Hon, a local eatery in the midst of this
Siren's song..."
http://dailyreckoning.com/Issues/2005/WEDR042305.html

05/17/05 ATTENTION! DEFICITS DISORDER
by Addison Wiggin

"The dollar just busted through its 200 day moving average. With a brief
tour through history, Addison Wiggin points out, never has a "reserve
currency" been so overburdened by national debt. This is an opportunity to
sell..."
http://dailyreckoning.com/Issues/2005/DR051705.html

06/24/05 FIN DE BUBBLE, 2005
by Bill Bonner

"In the midst of real estate mania, Americans are ready and willing to
believe anything...that their homes will always rise in value, that their
debt will never catch up with them, and that the American empire is
unshakable..."
http://dailyreckoning.com/Issues/2005/DR062405.html

07/07/05 BUBBLE ANATOMY
by Kurt Richebächer

"While economic optimists try to downplay America's non-existent economic
recovery - Dr. Richebächer looks at financial development through a
different lens - and sees a more permanent softness in the U.S.
economy..."
http://dailyreckoning.com/Issues/2005/DR070705.html

09/09/05 WEALTH, POVERTY AND BLITHERING IDIOTS
by Bill Bonner

"Among the sea of those who believe the government dropped the ball in the
aftermath of Katrina - there is one man who points out that we put way too
much faith in American politicians. See what the ultimate contrarian has
to say..."
http://dailyreckoning.com/Issues/2005/DR090905.html

10/06/05 AN OIL BOOM - WITHOUT THE OIL
by Byron W. King

I cannot speak for the Almighty, but I believe that this boom has more to
do with the monetary expansion of Mr. Alan Greenspan, and the predictions
of a fellow named Dr. M. King Hubbert, than with the Big Guy upstairs."
http://dailyreckoning.com/Issues/2005/DR1006.html

12/16/05 EVENING IN AMERICA
by Bill Bonner

"The codgers refinance their houses, pay with credit cards, and vote for
whoever promises them the most of someone else's money. In politics, and
in money, the grumps go along with whatever is popular - just like
everyone else."
http://dailyreckoning.com/Issues/2005/DRUS121605.html

---------------------

THIS WEEK in THE DAILY RECKONING: It has been quite a somber week for us
at The Daily Reckoning - and for everyone at Agora, Inc. as a whole. We
lost Thom Hickling, a DR founding father and an integral part of the Agora
family, to a car accident in Africa. He will be sorely missed. "Thom
Hickling, RIP" is Bill's eloquent farwell to his good friend and
colleague, below.

Spontaneous Order 12/30/05
by Bill Bonner

"We are often asked: "So, what exactly do you guys do again?" Admittedly,
sometimes we wonder the same...but Bill Bonner did a brilliant job of
enlightening his employees at this year's holiday meeting..."
http://dailyreckoning.com/Issues/2005/DR123005.html

Thom Hickling, RIP 12/28/05
by Bill Bonner

"Somehow, Thom could create a party just by walking into a room."
http://dailyreckoning.com/Issues/2005/DR122805.html

Secrets of the Near Dead 12/27/05
by Bill Bonner

"In line with his true contrarian nature, Bill Bonner believes that the
more out of touch with the current thinking an investor is, the more
valuable his opinions. Read on..."
http://dailyreckoning.com/Issues/2005/DR122705.html

Menace to Society 12/26/05
by The Mogambo Guru

"The highlight of every holiday season for us here at The Daily Reckoning
is the annual Christmas card from our friend, The Mighty Mogambo. And in
this holiday spirit, we give you...The Mogambo's Monday Essay (TMME)..."
http://dailyreckoning.com/Issues/2005/DR122605.html

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