pater_tenebrarum

Still Blaming the Market Victims

i agree with this article 100%. one can not spend one's way to prosperity. if that were the case, Zimbabwe would be a utopia of riches.
i have recently taken Krugman to task as well:

www.acting-man.com/200...

Gold and Silver Bells Are Ringing

the bell that is currently ringing the loudest is the alarm bell. gold and gold stocks have failed to make new highs for the past 12 months now, while paper assets have been soaring world-wide. it won't take much for the gold stock indexes to break long-standing uptrend lines.
the dollar is very oversold and widely hated - and has only just begun to bounce off support that has held for decades. you bet it's a 'drag' on the metals - and will likely continue to be one. every tiny bounce in gold stocks has recently met with selling , which has of late grown more determined.
this is not to say that the secular bull market is over, but it could be in for a rest, and that rest could be very painful for holders of precious metals shares. the 1970's mid-cycle correction produced a 60% sell-off in gold stocks between 1974 and 1976, if something similar happens here, one would do best to sit it out. in short, one should now wait to see if the supports actually hold, and only adopt an outright bullish posture when they clearly do.

Gold and Silver Bells Are Ringing

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