Monday, September 22, 2008

Markets Continue Spiral - Gold / Oil Spike

America's $47-trillion bubble of debt has burst. America's $180-trillion balloon of derivatives has popped. And all the president's men cannot put them back together again.

Last year, they tried three different mortgage work-out plans. This year, they tried a massive economic stimulus package. They resorted to a myriad of unprecedented lending facilities. They even bailed out Bear Stearns, Fannie Mae, Freddie Mac and AIG. Each attempt was more radical than the previous. And each attempt failed miserably.

Now, appearing before the American people at the White House Rose Garden, they've declared that they're going to try again, this time with an even bigger, more ambitious plan: A structure to buy up the bad debts of sinking banks ... a guarantee for money market funds ... a prohibition on certain short selling activities. And with all this, they say, they're finally going to "restore confidence" and "end the debt crisis." From the Money and Markets .com website

Economic Bailout - is not fooling anyone

The 700 billion dollar bailout is a brave attempt in calming the markets and restoring confidence. Unfortunately, I fear, that it is too little to late, and the markets are agreeing. The rallies of last week, it appears, were just a short squeeze, as traders and investors cover their short positions. Some non -financial listed companies are doing buybacks of their shares, but other than that, there is no real buying/investing, John Q Public is scared and very defensive.

Gold is up again this morning $897.40 + 25.60, Silver is also up sharply +.73 at $13.35. NYSE is down -167, and the Dow down $-220. (11:48am), OIL back to $110, if it breaks above that level and holds, we could easily see new highs $147 or more, let's not forget about Winter and the heating season staring. The US Dollar continues its downward trend

There are indications that 700 Billion is insufficient and that the real totals at risk are much higher. Very interesting article from the analysts at

Stock Market Countdown

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