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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: bart13 who wrote (106650)12/10/2009 11:11:22 AM
From: TH1 Recommendation  Read Replies (2) of 110194
 
bart,

It's amusing, for we are never going to get an accurate "cost". Just as the insolvency of so many states is never really factored into the equation. At some point, the world has to recognize that printing in mass will continue for a long, long time.

Right now I think they are gearing up for stimulus round two. I'm sure Ben and Tim want some dollar strength to play into. I also see the start of a new market game where they try to inch up the indexes while rallying the dollar. I don't know if it really will work, but I believe that is the plan.

As for gold, well, same old story. Bugs (including me in fairness) run for the hills at the first sign of weakness. Bugs are programed to act just like bugs <g>

Gold has no reason to sell off here, but it will. Every reason for gold to be on the upswing is still firmly in place and even more reason will materialize as it is recognized that the recovery is not robust, jobs are not returning, housing still has a massive (hidden) overhang, and tax revenue is abysmal. But in the short-term they will game gold, for they hate it and must. The trick is how low they can get it before they try to cover. I think the potential for a serious bounce is high, but we could flounder around for months too.

GT
TH
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