Posted on 12/22/2009 3:08:27 PM PST by blam
Prepared For An Exceptional Correction
By Bill Bonner
12/22/09 Paris, France – The price of gold fell $15 yesterday, to close below $1,100. We expected a correction in the gold market. But we thought it would come along with a correction in the stock market. Stocks rose 85 points on the Dow yesterday.
We take this as a warning: something is going on that we don’t understand. That said, there’s a lot going on that we don’t understand.
But the broad patterns generally make sense. Boom was followed by bust. As dear readers know, the force of a correction is equal and opposite to the deception that preceded it. The deception of the Bubble Era being exceptional, the correction would be exceptional too – even under the best of circumstances.
But these are not the best of circumstances. Because several other things are happening…things that need to be reckoned with, too.
[snip]
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Tremors. Prior to “The Big One”.
Does anyone really think that “normal” economic indicators have any relation to the present situation?
What’s so hard to understand? People ran to gold for safety from a failing economy and falling dollar. The dollar has rebounded a bit and the economy is showing signs of life (though some disagree). As money moves from gold... it will go somewhere...
Duh, read real slow, when the price drops no one is willing to pay at the prior price, it's called supply and demand.
I think things are a heck of a lot worse than "the numbers" say they are. The "numbers" depend on who's giving the orders.
The democrats are spending like "there's no tomarrow." Maybe they know what they've done, but no one has the guts to tell us.
The Depression just keeps on getting worse and worse here.
I hope it drops lots more. I will then buy like hell and wait till the whole economy goes to heck and cash in.
We take this as a warning: something is going on that we don’t understand. That said, there’s a lot going on that we don’t understand.
What's so hard to understand? When the market was crashing, those that still had money panicked, pulled their remainder out of the market, and bought gold. Now that things have settled down and there is a possibility of the Fed raising interest rates... those people are now comtemplating a move back into stocks.
Heh, I think I just posted nearly the exact same thing you did.
:-P
After all of that, and the best advice this egghead has is “buy gold”??!!
Here’s a hot News Flash Boys and Girls: You cannot eat Krugerrands. Buy accordingly.
>>The democrats are spending like “there’s no tomarrow.” Maybe they know what they’ve done, but no one has the guts to tell us.<<
And just maybe they know that in a sense, there IS NO TOMORROW.
That’s true, and remember, if you buy with gold coins someone is going to follow you home to get the rest of them.
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