TJ, something is very wrong in our collective assumptions - it is my take that based on the huge amounts of paper money printed around the world but mostly in the US, and general world financial panic, gold should be at least over $1,500 - but it is not - it not even reached the price level after Bear Sterns collapse.
Since we had FNM, Lehman, AIG, WAMU, Fortis, Hypo RE, B&B and many more substantial financial institution ceasing to exist (including Commerce Bank and others on the brink) and the panic is world wide but the price of gold is below the spring peak.
It seems that there is no massive gold hoarding except that of gold bugs.
Further commodities are swooning in tandem - which bring up the speculation that the last 2 years of bullish move in commodities was also orchestrated by the hype of financial types and only relative weak pent-up physical demand
People do not and will not eat less and world population is not shrinking but grains, if corn or wheat are 40 to 60% below their summer prices same for soy beans which traded around $16 and now $9 matching the crude oil and stock market decline - to me the price correlation is very very strange – or it is my mistake still correlating the pricing of everything tradable in USD
After all, I do eat daily products made of corn, wheat, soy and meat – even orange juice and sugar - but not stocks <ggg> then why the correlation?
In this respect I only wonder how clueless most CNBC types and “mavens” are - beaming so much nonsense to the populace – their most recent idiotic strike is, the proud attitude toward the rising USD – they think it reflects soundness of the US economy when in fact it reflects a scramble to raise money to meet margin calls and a irrational stampede out of everything not US based.
It is obvious to me that the talking heads at CNBC are not put to same scrutiny as would be any other GE employee. I can only assume that if the head of a GE unit, or any other multinational corporation for that matter, will spew so much nonsense like the talking heads on CNBC he would be fired on the spot <GGG> |
