jayson888

The Rebirth of Gold and Silver Stocks

Lehman, Bear, AIG, Freddie, Fannie. These are inflationary because the govt is bailing out most of the losers with money it does not have (essentially printing it), and taking low quality debt collateral from these companies (and others) onto its balance sheet. With junk-bond quality securities making up most of the Feds reserves, which are what back the dollar, the dollar is bound to resume its decline as foreigners begin to bail out of dollars and US securities. A declining dollar will cause oil, food, Chinese products and many other prices to rise in the US, while wages stay flat. Fiat dollars will be exchanged for hard assets.

Housing was a massive bubble driven by underpriced Fed money. It will not be a safe haven this time around, especially as interest rates climb.