Jim Rogers and Peter Schiff seem to be the only voices of reason in the media these days. Rogers talks a lot of sense in this video.
Why would anyone in their right mind be FOR the bailouts? This is going to make everything worse. As Rogers says, we can have a short, sharp downturn in the short run, or we can have a 10+ year economic disaster on our hands.
The more the Fed and the government do, the worse this thing will get.
In the immediate future, my prediction is that somehow, congress will pass this bailout bullshit. Backroom deals and threats will get this done. The market will then rally, maybe for a few days. But in the not too distant future, the dollar will drop to zero, that’s $0.00.
2009 will be an extremely rough year for many Americans. Between this mess in the market and the coming real estate collapse (the real one), hold on tight (to your gold and metals)!
It’s getting embarrassing to watch the mainstream media cover this economy, which is being destroyed by the government. The government and the federal reserve caused every problem we are facing, and now they are supposed to be the ones to fix it?!?!!
Henry Paulson identifies the housing price drops as the cause of the problems. A sixth-grader could see through this B.S. and ask the next simple follow up question: What caused the housing disaster?
The answer is so simple, but with the propaganda machines in full spin mode at the moment, it is sometimes tough to grasp for some people. The government is now proposing a $700 BILLION bailout. Where do you suppose they get this money? From thin air of course! They simply print the money. And how does that affect your bank account? It shrinks it! The value of your dollars is rapidly depreciating through this abomination. It’s simply a tax on YOU, without the geniuses in D.C. having to say they are raising your taxes.
For some sobering realities, check out Peter Schiff and Ron Paul on their latest appearances on CNN:
Schiff on CNN 9/19:
Paul on CNN 9/19:
Paul on CNN 9/21:
The more the government and federal reserve intervene, the worse this problem will get. Sure, we will have an occasional rally in the market for a day or even a few days, but the fundamentals will win out- and most people, or “main street” will lose.
To keep safe from all this madness, consider buying some gold. Easy to do when you open an account at goldmoney.com.
This was the 6th largest down day in the history of the Dow, lead by the historic collapse of stalwart Lehman Brothers, and the buyout of Merrill Lynch. Subsequently, gold was up over $25 today.
Where do we go from here?
As far as the dow goes, tomorrow will be crucial. If we drop another 200 points and go below 10725, we will have entered Meltdown City. If it can hold above that mark, this could be the bottom.
I think we’re done. The Federal Reserve will likely lower rates by a point or so tomorrow. The emperor has no clothes and you better believe Bernanke and the bunch are in full panic mode at this point. And of course, the motto will be INFLATE OR DIE! The problem is, they may inflate, and our economy may die anyway!
So what will happen? I don’t know, but I do know that I’m a happy camper sitting in gold right now. I don’t have much exposure to all this madness (except for my gold mining stocks)
Another interesting part of this financial meltdown is that we are in an election year- which typically means a strong stock market. Well after decades of insane monetary policies, the chickens have to come home to roost at some point, and this is happening now.
And while “change” is certainly something we need, Obmacain will not make a damn bit of difference in all this mess, since they both want to uphold the status quo- which means even more inflation and 3rd-worldness for us Americans!
Some pundits have called for the end to the gold bull market, or at the very least a long pullback period. There are three important points why I do not believe either case to be accurate, and I think continuing to buy or hold at this point is still the smartest thing to do.
1. Indians have been lured by the lower gold prices. Bullion imports in Abu Dhabi — a key middle East gold hub — surged 300% in August compared with the same month last year.
2. Gold has not dipped below it’s 21-month moving average since early on in the bull market in 2002. The 21-month MA is currently 790, and gold has been holding solid above 800.
3. The U.S. mint’s inventory of American eagles is down to zero. The mint is out of gold eagles, and many dealers have no supply of gold coins.
4. Late summer has been the worst time for gold over the course of this bull market, and Fall has been the time we’ve seen the biggest surges. We’re only two weeks away from the start of Fall, it would be foolish to sell now!
5. Gold has been held back due to the dollar rising. The dollar has risen due to a worldwide economic slowdown. This has nothing to do with the U.S. economy being strong. The fundamentals are still working against the dollar, and will eventually win out.
Interesting interview of Ron Paul from a somewhat unbiased source, The Real News.
“I don’t see any difference between the foreign policy of McCain and Obama.” – Ron Paul.
Either way, we’re goin down in 2009!