Dan Schmeidler

Long Ideas for an Upcoming Crash

An earlier posting here made a very good reference on the ability of this government (and its federal reserve) to turn things around quickly and raising interest rates drastically. But is it really necessary for the government to do that. In other words, are we really going to see those run-ups in interest rates? Maybe the executive bodies, (yes, along with the legislative, etc.) don't really see the need for a federal reserve and believes that this country is self sufficient and self-reliant and that at the end of the day we all know that we don't really need to rely on foreing oil. At least in the long run. I mean, they must think that there are enough alternative energy ideas out there to eventually relieve all ths pressure on energy prices. Maybe they think that all those wonderful innovations in energy are all going to take place here on US soil, and of course, run by more growth obsessed american corporations. If they do believe all that, they better start investing in those areas very quickly.

Long Ideas for an Upcoming Crash

I like the price target of Gold at $1,100 by Q1_09. I think by then that number will be a bottom and not a ceiling. The Federal Reserve has shown that it has no control over negative sentiments towards tha value of its currency. The markets more than ever or not treating the $US Dollar with much positive considerations of its future value and that is reflected in how the markets are willing to bid up Oil into these high and near ridiculous prices. How much extra dollars must there be lying around to pay for oil at $140 for a little barrel you can put in your garage. And what purpose can gold really have at $1100 an ounce, other than to give its owner some comfort that maybe the gold's value will fare better in the future than the dollars that are circulating around us.