Read Karl Denninger on how the Fed has been forced to prop up shares of Fannie Mae and Freddie Mac, to please foreign equity holders such as China.
Further comment from Mish.
The taxpayer pays all - and presumably we're looking to do something similar here, to keep the banking show on the road.
This may be the time when those predictions about the Dow hitting 9,000 and gold breaking through $1,200 start to come true.
2 comments:
I've been a gold bull since $300/oz, but I'm really struggling at the moment. I can see no alternative to deflation in the medium to longer term which is causing me to question the gold bull at this time. Gold needs helicopter Ben style inflation which I can't see happening at the moment.
I still expect $1200/oz by year end, and I'll certainly keep my positions at least until then, maybe even adding to them, but it's getting harder and harder to stay long and strong.
33% gain in 4 months should be okay, if it works out the way you believe!
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