Mr. G

Global Precious Metals Correction: Healthy and Overdue

Profit taking and the rise of the U.S. dollar (5 cents against the EURO) is probably responsible for the markt perception that gold should be corrected to reflect market risk. I havent heard any fat ladies singing that all is well in the U.S. The same factors supporting commodity increase and dollar devaluation are still in place except the Fed didnt print more money to solve the Bear Stearns failure. Will the treasury have to print more money to solve the liquidity crisis in the US banking system? Will the FED have to continue to lower the FED rate to cope with the recessionary risks?