johndaniels123

Oil Replaces Gold as the New Inflation Hedge

i would like to add, however: and ironically, that the dollar is stronger than ever now with regards to assets: such as stocks and real estate. However, the true valuation of real estate is in the ability to finance, or the value can be brought into question. Its not immediately liquid and without buyers will decrease in value. This is solely a result of the deflation due to banking finace mismanagement: i.e real estate loan speculation and creating bogus derivative assets. The failure of our leadership is entirely apparent: from the fed to the generals in the field to Bush to Bernake. They all failed. I am sure part of the reason is external government forces working against them; but the lack of forthought and need for for self preservation will, again ironically, be their (and our) undoing.

where can we run? nowhere is safe. at least gold cannot be taken or frozen. put it in a safe deposit box. buy it by the oz. it at least holds value internationally, where dollars will eventually not. There is the question of whether gold is indeed an inflation hedge, but in a hard and sudden dollar crash, gold will be.

Oil Replaces Gold as the New Inflation Hedge

David Lentz:

We saw the markets tank along with the fall of bear stearns in march: then the fed injected capital and later the stimulus package was inacted. Now look what happened. Immediately after that injection, the markets rallied past DOW 13k...only to test new lows now as those funds have been depleted. This stimulus package is close to its conclusion. Now the fed is stuck: they cannot raise rates; and they wont this year. They have committed to the economic growth premise: and it has failed. Europe and Japan are set to increase rates. The spread against the dollar will worsen. The housing problem is not going to improve because of the pressure on the consumer and the press. Even fixed rate loans with 20% downpayments way underwater: so bad in fact that people who can afford payments will walk away. BAC is buy CFC's worthless loan portfolio; thinking it is an act of genious but is reflective of a overtly speculative maneuver that housing will recover to the 2005 levels.

Bear stears showed us the investment houses like LEH and MER are comprised entirely of paper asset equity and have no hard value: if clients abort these conglamorates, they will surely fall. Foreign countries like Russia, China, and the middle east are working to undermine our economy, and americans themselves depend on their entitlements like social security and medicare; and will continue to lobby that they remain as they are. Americans have become fat, lazy, greedy and incompetent, and maladaptive. Obama will surely enact record socialist 'people pleasin' initiatives from the gov't. Mcain represents the failure of our judeo-christain economic philosophies; and the Bush stigmata will remain with us for years.

How can you imply there is any hope for the dollar to recover? If there was ever a time to not have faith in the financial system, it is now.