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These guys must be getting desperate, what a crock. First they say that the EMU may not hold any gold reserves and now maybe less than 20%. Who cares? What are they going to back up their currency with, devaluing paper assets. It took them the whole weekend to come up with their latest scare tactic, and it dropped the POG 1 dollar. The real excitement should come soon. No one wants to be short after the first notice date on December gold and have to come up with the physical metal if the Comex reserves are depleted. If POG holds tomorrow, things should get interesting. Who is the USA's #10 bank and #4 brokerage house, if they were to go under it would cause a panic in our investing public here. Studies of the behavior of investors show that after a 10% loss they become angry, and after 20% they panic. The Japanese market is down more than 20% from it's high this year. The Japanese investor is all over the sell button. One other point, if the government stays out of this meltdown, and it's everyone out for himself, then we have the classic game of musical chairs. Whichever Japanese bank, insurance company, or brokerage house liquidates first gets their chair, once all the chairs are gone. Game over. |
