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!