Posted on 08/23/2007 6:05:04 AM PDT by vietvet67
The US financial system is experiencing a combination of a heart attack (fibrillation from absent trade recycled surpluses), a massive hairball (subprime debt securities) working through the bank arteries, and a realization (like Wiley Coyote in cartoons) that no terra firma lies beneath the economic feet as the depths below are vividly apparent.
(Excerpt) Read more at 321gold.com ...
Is this a news article or a sales pitch?
Metaphor Abuse Hotline, may I help you?
Trailing P/E of the S&P500 is about 15. Projected is about 16. That’s the lowest it has been since 1994, I hear.
The Stock Market is a screaming deal. When the fear and uncertainty over a small corner of the credit markets disappears, look for an excellent run up in stocks.
Gold only makes sense to me as an inflation hedge. The Fed was far too loose with money in 2003 and 2004, and we’ve paid for that with inflation, which helped Gold. Relatively tighter monetary policy is now helping defend the dollar against inflation, but barely. I wish the Fed had more willingness and room to tighten money supply, as the inflationary pressures and resultant weakness in the dollar are not good. I think they are doing Ok, not great.
Aside from an inflation hedge, what is gold? Does it go to work for you every day and try to earn you money, like stocks? Does it pay you a fairly guaranteed interest rate? In what manner is gold a productive compounded growing asset? In no way whatsoever.
Gold is for jewelry.
Sorry if you take this for a gold sales pitch.
I find this fellows views on our financial system worth reading especially in these interesting times we live in.
My comments on gold? To each his own. Besides, my fire suit is in the cleaners. :-)
Just wondering... :)
lol
Yeah right, those Krugerrands I bought at $550 back in the Carter years have sure been a great inflation hedge, you betcha.
Inflation under Carter was 18%, so you bought high.
In 1990, when inflation was low, I bought Kruggerands ($268?), and sold them in June this year($660?). Annualized rate of return was about 5%. The change in actual and prospective inflation helped generate those meager returns.
I did pretty well with this tiny little bet, and yet I still wish I had put the money in the stock market where annual rates of return would have been >7%.
Yes. The money supply is contracting. It’s the exact perfect time to (not) buy gold.
BUY GOLD OR YOU WILL ALL DIE —Chapter 4,789,774
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