AndrewBaker

Wall Street Breakfast: Must-Know News

Manipulation is the name of the game, any which way you can do it. Whatever happened to buying something because it was worth it?

Friday Outlook: Commodities, Global Markets

I agree that we're at a resistance point, and I do not see it being broken through because the fundamentals are just not good enough: if we do, though, then all reason has gone and the market's become a casino.

Gold may drop back for a short while, but the weak dollar and over-high stock prices will soon see it move back again, and $1200 by Christmas is on.

And my natural gas looks like it may start to repay me, though it has to move a lot to get me back to where I started!

So, I'm still long gold and short dollar, with nat. gas closing on the rails.

Wall Street Breakfast: Must-Know News

Employment down, consumer credit down (and not just because no-one wants to spend, they just can't borrow because the banks are saving themselves first and consumers are well down the list), and, not surprisingly, consumer confidence is down. Yet the banks especially and the markets generally keep on going up.

Until the manipulation of stock prices by whatever means, stops; we will not get a true recovery. All that is being achieved is a growing potential bigger drop in stock prices that will hit people already suffering due to the losses of the past two years. Letting the patient think he's getting better then knocking him back down again is not the way to instill confidence nor to get him wanting to get back up again anytime soon.

Apparently, Warren Buffet is buying less stocks and more bonds now. He's not stupid: take note and take appropriate action. When the Sage shuns stocks for bonds, he's not doing it to help the government. Sell stocks now whilst prices are as attractive as they are, or weep later when it's too late and the falling knife cuts you.

Wall Street Breakfast: Must-Know News

I've decided that I have to get out of the financial and index shorts that I'm holding as the powers-that-be won't let the banks and financials fall anytime soon. They will drop in time but that will be a long way into the future, when the planned-for inflationized recovery has made our pain seem not as bad as it really is because the numbers will all be bigger, but not worth nearly as much.

Doing it this way will make us all poorer than we otherwise would have been, but will enable the boys to claim they've saved the economy, the world and anything else that's not nailed down. They will be fine, we will be poorer, but not totally sure about that because it will have taken so long and values so messed up because of inflation that all we will know for sure is that somehow we were done over by legalized grifters.

Gold Is Going to Gain

Good article, and provoked a lot of different comment, with the majority agreeing that:

1) Keynesianism isn't a good answer but helps politicians buy or keep votes (they think), whilst prolonging the misery for those most affected.

2) Gold (and silver, let's not forget) are real wealth that politicans and financiers can't mess up, so in bad times we should hold our share of it.

I agree with both, and am heartened that the majority of the small sample here at any rate share these consensus views. There's hope for us yet!