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To: habitrail who wrote (3108)	7/24/2002 6:21:20 AM
From: habitrail	Respond to of 89467

a more GJTS perspective: financialsense.com

To: habitrail who wrote (3108)	7/24/2002 10:01:22 AM
From: Jim Willie CB	Read Replies (1) \| Respond to of 89467

thanks, HabMan, I hear the risk on gold really tough call but Russell doesnt cover two critical factors regardless, gold may drop further here 1. financial stocks are indicating here of possible serious serious trouble for the major banking firms, in particular NYCity moneycenter banks... their exposure is not only to poor loan portfolios and declining rates, but also derivative hits from second shoes, and lawsuit liability from fraudulent investment banking... interesting how repeal of the Glass-Steagal Laws now allow BIG BANKS, BIG INSURANCE COMPANIES, BIG STOCK BROKERAGE to all join together... JUST IN TIME FOR SHAREHOLDER LAWSUITS !!! 2. if banks begin to fail, then the move toward gold will increase... right now money is flying out of the stock markets, and not so much into real esate (for retail investors) but rather into simple bank accounts... if the banking sector takes some serious serious lumps, as I expect, then money will not necessarily be safe in the larger banks, which will cause people to move some money out of banks themselves... few seem to focus on the risk of bank closure and savings seizure/loss... I expect to see some high profile cases before next year ends both 1) AND 2) are good for gold Russell gives no credence that gold is a deflationary hedge this is a real flaw in the investor mindset but a risk since it is not a learned factor Japan proved the gold's deflationary hedge power is awesome if & when Americans realize this, then gold could move up the investor risk is that Americans shed their gold in the deflationary environment, and come to learn later that it would have saved their depleting asses gold is a great hedge in BOTH inflationary and deflationary times Americans learned in the 1970's only the inflationary side that is their conditioning to date but you cannot dispute the tape gold shares are getting hurt / jim