“Mr Bernanke may also be preparing to deal with the coming eurozone crisis which threatens massive contagion to the US banking system. This is the next 600lb gorilla to enter the living room. Unemployment is a consequence of Fed policy and employment cannot be magically produced by monetary policy or we would always have full employment, see: http://www.arabianmoney.net/gold-silver/2010/12/07/eurozone-on-the-brink-of-a-lehman-style-meltdown/”
“This the repeat of 1931 and the collapse of the Credit Anstadlt Bank in Austria that brought the second stage of the Great Depression. The situation about to blow up in the eurozone is beyond the Lehman crisis in potential contagion to the global banking system and look what happened then! All this is about to go haywire, see: http://www.arabianmoney.net/gold-silver/2010/12/07/eurozone-on-the-brink-of-a-lehman-style-meltdown/”
“You know much of what is said about the Portuguese economy also applies to the United States. How long before stock market investors realise that 70% on the S&P over 20 months is just far too much for the economic prospects ahead? After all the downside is huge and the upside cannot be great from this point, see: http://www.arabianmoney.net/us-dollar/2010/11/28/is-there-much-upside-left-for-stocks-in-2011/”
“The bank just needs to provide a decent return for depositors - not spend even more money on marketing itself. The product is the issue not the packaging.”
“he, he i love this one, during the 29 ticker frenzy astrologers were doing a fortune, maybe it would be easier to look at the self-repetitive cycles of the economy? You are being played the 29 crisis and 30s step by step... characters included 'history rhymes' Twain www.economicstruth.com”
“The cute little critter thinks that deflation is a stable phenomenon that will simply benefit consumers with no downside. That's funny. Not sure why it should matter that The Ben Bernanke was never elected to office nor ran a business. Not that I a saying he is right. I don't claim to know with any certainty either. It's just that some of the arguments seen irrelevant.”
“The problem is that a more credible argument can be made against the US policy of building up bigger and bigger debts and inflating it away and using devalution to boost expoprts. Is there any example of doing this in history that has worked? Or at least not without a havoc inducing period of high inflation? It is hardly an easy option either. This is a formula for lower financial markets, see: http://www.arabianmoney.net/us-dollar/2010/10/26/qeii-is-a-formula-for-lower-and-not-higher-equity-prices/”
“Bullion would be safer than gold stocks which will fall with the rest of the stock market very soon! But they will be exactly the thing to buy in a correction/crash...”
“Yeah totally agree; a lot people are pushing the gold stocks on their leverage off the gold price, but people don't see that the cost to start a new mine is insane. The market realizes that the high gold price won't last long enough for new mines to profit from a high price in 15 years; hence the low stock valuations. Hold the gold in bars and coins.”
“Gold is a currency that is the whole point and completely missed by this author. If the world is worried about the dollar as a reserve currency it moves to gold as one that QE cannot touch with money printing. Short term selling GDX might be a good move but you would want to buy it back after a correction. ArabianMoney.Net has many incisive articles on gold and silver investing. This author would surely agree that we have absolutely no sign of a spike in the gold chart - that would be the time to sell...”
“No it's not a currency and hasn't been for about 80 years in the US. It's a commodity. And once real currencies stabilize, it will reflect its real commodity price based on demand in the real economy. For now it's a mythical holder of inflated wealth.”
“It's funny, the author makes your argument in the 3rd paragraph with the suit purchases over time. I own GLD and Canadian Central Fund only as a way to preserve what I have. The Fed has clearly stated its plan to debase the currency in the hopes of stimulating the market. As long as they are adding zeros to the ledger, I'm buying commodities and stocks from companies that actually make things people buy.”