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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: dave9 who wrote (112187)	10/19/2008 10:13:03 AM
From: Tommaso	4 Recommendations Read Replies (1) \| Respond to of 206201

I think that there may well have been liquidation of all sorts of things as hedge funds try to get cash. There may also be heavy short selling of oil. And the failure of gold to make much of a move up might indicate that it, too, is being sold to raise cash. If you look at the charts and figures provided by the St. Louis Federal reserve Bank (and thank goodness for their honesty in continuing to provide this information), what you see is a graphic picture of total fiscal insanity. research.stlouisfed.org Monetary growth far smaller than seen here was enough to culminate in 14% per year inflation following the Vietnam War. Conditions are many times worse now than then, in terms of budget and trade deficits and outstanding national debt. I therefore believe that the collapse in oil price and the sluggishness in gold price are merely irrational and temporary accidents of the unwinding of all these nutty funds. For a brief moment, what everyone wants is cash in hand or at least in the bank. When the fragility of the value of paper money becomes obvious (and I don't know how long that will take), money will surge back into consumable commodities and into gold. The 150% leveraged fund PMPIX that tracks gold producers is down something like 80% or more from its top. An investment in that fund could go up fivefold in a year. But everyone has to make that kind of decision for himself/herself. As I may have posted here, as soon as I could last week I used my bear-fund profits to double my holdings of COS.UN. If COS is not a screaming buy, I do not really care, because that means that I am so insane that nothing can get to me anyway <G>.