Posted on 09/16/2009 7:57:26 PM PDT by blam
The Financial Crash, U.S. Dollar, Cash and Gold
Sep 16, 2009 - 09:21 AM
By: Tarek_Saab
With the Dow continuing its steady climb into September, economists are giddy with enthusiasm as they usher forth a stream of emotional pontification throughout the news media. Calls for a new bull market and an end to the recession are increasing with the rising levels of optimism (see: MarketWatch). How anyone can be bullish on stocks despite the innumerable economic warning signs is beyond my comprehension.
The recent figures in the Daily Sentiment Index reporting that traders are 89-90% bullish is a testament to human emotion as a market mover and the efficacy of state-run propaganda. Do economists really believe in the power of green shoots? Incidentally, the college term "green shoot" represents a different kind of stimulus. Maybe that explains it.
But one man's bull market is another man's gilded rally, as the mania always peaks at the end. This mania has been especially intriguing to observe among gold bugs, at the present time vindicated by gold's heroic push into four-figure territory. Some claim gold is "finally" on the verge of breaking out, as though the yellow metal hasn't spent the entire decade breaking out.
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Scary. I’m stocking up on some seeds next, I think. Maybe buy some canning equipment too, just in case.
I think gold is overvalued.
I bought the last seeds Walmart had. They don’t carry the heirloom seeds on the next shipment.
Also, if you can find produce at farmers market it’s better if they have FULL unsterile seeds. Like we bought some Cantaloupe at the grocery store with thin, flimsy seeds. Bought some at the Farmers market and they had the nice full and sturdy seeds. Dried them out on a papertowel on a windowsill and put them in a dry cloth in a ziplock bag. Cantaloupe is good because it’s vitamins are similiar to fruit, but don’t have to have space or wait for a tree to mature.
Interesting. Thanks for posting.
And the dollar is? Gold is money.
Me and all my neighbors did that last year.
US Credit Shrinks At Great Depression Rate Prompting Fears Of Double-Dip Recession
The Oracle of Lexington sayeth as follows: “Git yur munny offshore fast...”
Gold is for suckers and yes I know there are goldbugs on FR. But it is the next bubble. It may keep going up for a while but it is way overvalued and it will fall dramatically.
Take a look at www.Market Ticker.com. This guy seems to be so right and it scares me sh*tless.
If our currency really fails, food will be money. Can you eat gold? It will be useless in a real diaster.
I agree gold is over valued - the present rise in price is an emotional bubble reaction and won’t hold. The market is due for another drop as it’s only been talked up, not up due to fundamentals like profit and real goods buying. The slim profits now reported are due to company downsizing and layoffs, not increased sales and production. The commercial real estate debt and TARP debt overhang will bring the market back down.
Gold is a hedge on inflation, but we are not past deflation and lower product prices yet. The only buying now are deals, sales and stimulus money pushes which won’t last. You can’t eat gold or write a check to pay bills on gold, so those hoarding it will have to do some selling. Also, the mining and production of gold continues and overseas mining costs are way down below the present selling price, so the present price won’t hold.
If you are a gold bug and want some, hold off on buying as the price is likely to come down. My opinions are personal and not financial advice.
But you may consider buying lead?And the means to use it.
You got that link?
By Ian Mathias
09/16/09 Baltimore, Maryland
As usual in Washington, it’s “Do as I say, not as I do.” While Ben Bernanke is talking up the U.S. economy, Congress and the IRS are scrambling to stop another real estate collapse.
First, the political left and National Association of Realtors are in the process of extending the now famous “first time homebuyer tax credit.” The initial plan, which was passed around this time last year and allows first-time homebuyers an $8,000 tax credit, is on track to cost about $15 billion — double the projected budget.
Heh, and just like “cash for clunkers” going massively over budget must be a sign of scorching legislative success. Thus, the new plan is to extend the tax credit into the summer of 2010, boost the credit to $15,000 and make all potential homebuyers eligible. Those who are content with their current home and/or unwilling to invest in a new one… well, they get the prideful assurance of knowing they played it safe — and their kids get the bill.
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I’m skeptical but all the “experts” are saying the worst is over. I guess we could all pretend its over and act like its over, but where are the doom and gloom guys. I can only find a few of them.
parsy, who still thinks the worst is yet to come, but could be wrong
Yes! That is the one. Everyone should watch it. Very interesting.
This is the one most recently that got the hair on the back of my neck standing up.
How To Prepare For China’s Coming Derivatives Default
Sep 13, 2009 - 04:48 PM
By: Graham_Summers
In case you have not heard the news, China has announced that it will be instructing its state-owned enterprises to potentially default on their derivatives contracts. As I have written extensively in the past, the derivatives market is a massive time bomb just waiting to go off.
China’s latest move may be the match that lights the fuse.
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I am not saying any of this to be “scary” or “doom and gloom.” But things are coming to a head in a very REAL way on the global stage. And it is not looking good at all.
This financial crisis is nowhere near over. If anything we’re at the end of the beginning. Many, many more banks will go under. We can and will see a lot more volatility in the bond and currency markets (a bear market in bonds would be a nightmare we haven’t seen in 30 odd years). And stocks (already overbought and propped up via manipulation and accounting gimmicks) are primed to take a full-scale nosedive
My Personal Message: BE PREPARED
In light of this, and on a more personal note, I am suggesting you prepare for the WORST if you are in the US. This means stockpiling food, and having enough cash on hand to survive an economic shutdown if it happens. We came close to such an event last fall (the story was not widely spread but banks in US and UK considered shutting down ATMs and having a holiday).
I can tell you that I personally have stockpiled food (3 months’ worth) and am telling my family and friends to do the same. After all, what’s the worst that could come from doing this? If I’m totally wrong and everything gets better, you simply eat the food just like you would anyway.
But if I am right, and things do get MESSY, then stockpiling now means you’ve got food on the table later. Again, we have the making of several black swan events that could push an already weak economy into SERIOUS trouble.
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