TB--The only thing the huge "bailouts" have done the past few years is roll over the debt. No principal gets paid. I think we all know a day of reckoning will arrive.
We are in the last stage of a global equity market boom. Prices of
large-cap US stocks have unhooked from any form of rational valuation.
The banks get to roll over dead loans on their books, with a wink from the Govt. (BTW, Mortgage literaly means "DEAD DEBT!")
So, the pundits rejigger their models of what is normal valuations.
Speculative bubbles always end in disaster, and this one may be the biggest the world has ever seen.
I would suggest you get a copy of the book "The Money Manias", by
Robert Sobel, 1973. LCCC#73-76569
You should find it at any decent library.
Despite what the 49'R says, gold will not move up untill the dollar falls. The reasoning is simple-- the dollar is where the money flow is now going, because of the very fact that the buck is now king.
So, one can infer that when the dollar weakens, the safe havens for
SAFETY of capital will be scarce, which brings us back to metal.
In the meantime, no reason not to day trade lots of things.
My reasoning is simple, it's like cheap gas, enjoy it now,
because everything changes. And, these days, it can change in a wink of an eye!! |
