To: TobagoJack who wrote (81261 ) 4/28/2007 8:26:15 AM From: orkrious Read Replies (1) | Respond to of 110194 In other words, do we have to worry about a housing crash induced consumer spending crumbling that re-introduces the event known as credit crunch, which than craters all assets that had a correlation of precisely 1.00 with money supply, and yet not take gold down with it, and see the rise of the money whose faithlessness ranks well alongside the Zimbabwe Dollar even as one strategic competitor and another Hiroshima Nagasaki nuke trained tactical lapdog lackey continue to fund a trillion dollar military adventure in Mesopotamia that is being undermined by weak kneed politicians who are trying to look good on TV readying to be annointed by another panel of judges to inherit an office in a white house that is increasingly irrelevant in this world? Yes. <g>What do you think? It wouldn't surprise me if it started yesterday in response to the GDP report. Gold had strengthen considerably in the hours leading up to the report, perhaps anticipating what was to come. It strengthened further after the report. Not only did the yield curve steepen everywhere along the curve, only the 3 month bill went down in yield, anticipating the Fed printing and/or cutting. the two year was flat and rates in everything longer went up, anticipating what is to come. Although the Dow made a new high, breadth was punk. my homie/lender shorts, after scaring the shit out of me the prior few days, finally succumbed to gravity and acted as they should. Will gold initially get sucked down the throne on which all men sit equal when everything else heads south for good? It didn't really happen for the eighteen months starting at the end of 2000. Unless we have a complete crash I doubt it happens now. Even if it does, it will only be temporary and a gift from the gods, painful only for those who are overleveraged.