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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Brad Bolen who wrote (33809)	5/13/1999 3:40:00 PM
From: donald martin	Read Replies (1) \| Respond to of 116779

<<the rub would be that the English Gov. tried to talk the market down in order to 'save' GS.>> Isn't that the game? Central Banks build credibility over time with sound monetary policies. How they decide to spend that "coin", of the market credibility they've built, is their decision. Maybe they can get away with it. That's part of the bet. You go long gold when you suspect that they don't have very many credibility "coins" left to play. Back in '79/'80, the US extended Chrysler a huge loan to keep them in business. It was felt that after that, spreads between Chrysler debt and Treasuries would narrow, making it easier for them to borrow in the open market. The spreads did indeed narrow. Yield's on US Treasuries rose. The market saw the lack of discipline in bailing out Chrysler. <<Time will tell.>> YUP!