Gaucho

Why I'm Not Worried About the Market

Keep smoking that good stuff!!! Keep singing don't worry be happy as the plane loses power and the pilot is saying his last prayers. Hey fool if the market is going down find the dogs and bet against them. Don't fight the market it has a long way to go before bottom. It isn’t going to come back in 1 year like it did in the past.
This crap has been building for years and will not just go away any time soon. The housing market needs to fall at least 20% more which will devastate the wealth effect and place so many houses on the markets at below construction prices. The housing industry will be devastated. The default credit swaps are 45 Trillion and the Derivatives market is over 400 Trillion about 14 times the worlds economy. This is not the 160 Billion S&L crisis your daddy talks about.
The fed is acting like a cheer leader while passing out life vests to the banks. All the time saying, ignore reality and just listen to what I am telling you.
WE ARE IN DEEP SHIT!!! It aint going to get better no matter how much the FED jawbones the problem. No matter how many times some "anonymous” source says that a solution to ABK/MBI is going to be announced in two days. It has been two months and where is the solution?? Oh yea next week at the latest;) Watch closely as I shuffle the CDO/derivative insurance pea to another company and the problem just disappears.

And before you bash gold take these points into account.
1. The US is not the only player in the world economy like in the 1980s.
2. China is the largest consumer of gold now.
3. China has inflation of 7+%, and Indian Inflation and European inflation and US inflation and Dubai/Middle East inflation.
4. Gold and Silver ETFs in US, China and India and others to be announced.
5. China and other countries moving from the dollar to other reserves including gold.
6. Gold production expected to fall 1-4% over the next two years a demand soars.
7. GLD ETC is now the 3rd or 4th largest gold reserve in the world.

Just because the US M3 money supply is growing @ 16% plus this year not including the billions being dumped into the banks and the estimated 1 trillion the FED will pump into the economy this year excluding the expected 500 Billion deficit. And the housing values continue to fall as a hard asset. And oh yea the expected $4.00 per gallon of gas this summer. Inflation, What inflation, we got no Inflation, aint gotta show you no stinking Inflation.
NOW why would you want to go and buy gold?