Monday, 10/7, Market WrapUp (Taking it in the Shorts)

Financial Sense Online ^ | 10/7/2002 | James J. Puplava

[TheLion]

One point that isn't clear here, is mentioned at length by the column. This is in regards to gold. Do insiders have knowledge to know that gold can and possibly will be sold big time to make good their short positions. Are they possibly ones who can do it? One thing that has kept gold down in price is not being tied to a standard. Countries have been freed to to sell it. There is plently around in the vaults. A lot could be dumped at once. This has happened in the last 10 years. Maybe someone around here who knows more could clear this point up.

[B4Ranch]

Dow 7,422.84 -105.56 -1.40%
NASDAQ 1,119.40 -20.50 -1.80%
S&P 785.28 -15.30 -1.91%
(www.msn.com)

[Kozak]

I'm for massive reductions in Federal spending and regulations but how do you do that when the National Socialist Party is in control of the Senate? Tax cuts without reductions in spending are not a good idea last I heard...

Much as it pains me to say this our Republican congress criters haven't been much help. They have also been on spending binge like drunken sailors in a whorehouse....

[rohry]

"Do insiders have knowledge to know that gold can and possibly will be sold big time to make good their short positions. Are they possibly ones who can do it?"

I will try to answer this tomorrow...

I have to go to sleep now...

[rb22982]

THey're showing up in 6.0 i meant, no idea why it's not in yours.

[hinckley buzzard]

Right now, Swiss central bank is selling about a ton a day. Plenty there for shortcovering without spiking prices.

[TigerLikesRooster]

RE #9

Thanks for doing my response to his comment. You saved my time ! :) It is tiring after a while to type in a same answer to the same repeated comments. Many people think that some stimulus package can get us out of current economic downturn. Even the massive taxcut and deregulation cannot save us from this trouble.

[razorback-bert]

Where does one find out about these 'secret meetings'?

That is a secret.

[EVO X]

Is there no way to effectively communicate and advance a sound economic policy and a sound war policy at the same time?

Ok, What would you like Bush to do or say about the economy? He doesn't need to say anything to me about it. We are darn lucky the economy isn't worse off than it is. Hopefully, Bush is working behind the scenes to get the Senate back. If he gets it back, then the policy wonks can tweak the economy with tax policy.

[rohry]

The best way to answer your questions is to tell you to go to the Finansial Sense Website. There is a multitude of articles and Q&As pages there...The Storm Series (the article I suggested that you read last week) alone is over 100 printed pages...

For questions on gold go to Jim Sinclair's Q&A page...

[B4Ranch]

SBC's Daley: telecom in meltdown

According to Daley, about 500,000 telecom-industry jobs have been lost and $2 trillion in market capital has evaporated in the last 18 months.

[Huck]

Ok, What would you like Bush to do or say about the economy? He doesn't need to say anything to me about it. We are darn lucky the economy isn't worse off than it is.

I am not applying for the job of political consultant, or strategist, or communications director, or chief of staff. I am not even saying that economic recovery hinges on the President saying anything. What I am saying is that political objectives depend on political success. When Ronald Reagan was president, the economy was much worse, and we were fighting a cold war. Somehow he managed to communicate his agenda on both issues at the same time. I wish this President would do the same.

Hopefully, Bush is working behind the scenes to get the Senate back. If he gets it back, then the policy wonks can tweak the economy with tax policy.

That's my point. If the President requires both the House and the Senate to be Republican majority in order to have an economic policy, then it seems to me he is less than effective in that area. Ronald Reagan never enjoyed such an advantage.

[fogarty]

Interesting analysis. Of course, when it comes to war, everything is up in the air. But one thing which still needs to be corrected even if Iraq is a quick campaign - and that is the implosion of the credit and debt bubble in the US. This bubble will take years to unravel, and we are just seeing the start of the steep slope now. JPM has TRILLIONS in derivaties. Household debt has reached a greater point than any time in economic history. The market is still awash in easy credit and FED pumped liquidity. Until this burns off - possibly leading to a deflationary environment like Japan - we are not going to recover.

I would say the smartest thing Bush could do would be get rid of Greenspan. Unfortunately, he needed to get rid of him two years ago. The Fed is about to do to GW what he did to Bush I.

[razorback-bert]

JPM has TRILLIONS in derivaties.

What you haven't learned that this is not a problem.

Don't worry, some WS whizo will be along shortly to post the lesson.

[Zebra]

I agree with you on the prospects for a deflationary period and blame the Fed. The ONLY chance to avoid that scenario is for fairly drastic spending cuts (unlikely). Managing the economy by monetary policy only goes so far and we are at that point when rates are where they are now. Unless a fiscal policy fix is implemented, as well, the best investment will be cash or cash-tied investments, and fixed debt will be ruinous. If this happens, all bets are off, and it is even possible we will have to devalue the dollar.

[Tauzero]

Tax cuts are a good idea, period.

[rohry]

"It is tiring after a while to type in a same answer to the same repeated comments."

Okay, I did my part, next one is your turn!

[rohry]

"Tax cuts are a good idea, period."

OK, I admit you got me there. I'd still rather see some spending cuts too, however...

[Tauzero]

"I own mutual funds shares in utility stocks and shares in a bank. Both of them are down, especially the mutual fund shares. Sell and take the losses or hold on?"

Unless you're going to try and closely time the market -- a difficult game which most people lose -- I recommend that you stay in cash or the nearest cash equivalent for some time. You'll sleep better.

It's never too late to get out, until the actual bottom. Not that you should try to time that either. When the next bull is clearly developing, you'll feel no desire to ask fellow freepers for advice.

[tubebender]

Ronald Reagan never enjoyed such an advantage.

If my limited memory is corrrect RR came on the scene facing Carters failed policies and inflation of almost 20%(we are still paying for that). Reagans Fed raised interest rates until they nearly drove us into a recession but he also got tax rates back down to earth which offset the pain.