-- Posted Tuesday, 23 September 2008 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Tuesday, September 23, 2008
“Phenomenally accurate forecasts”
If Gold had been up another $100, yesterday’s dramatic price action on U.S. and global markets would have felt right as rain. As it stands, Gold rose a relatively modest $50 on subdued speculation that Paulson is actually serious about bailing out every institutional lender on Earth who holds bad U.S. mortgage paper. Under the circumstances, which verge on hyperinflationary, we attribute bullion’s relative reticence not only to the usual ignorance, but also to the false optimism fomented by such high-profile demagogues as Kudlow and Suze Orman. Both reach huge audiences, and that could account in some part for the fact that the Dow is still trading above 10000 while bullion remains on the launching pad, belching flames.
Not for long, as far as we can surmise from the charts. But don’t expect everyone to experience the implied epiphany at the same time. Two years after the stock market crashed in 1929, there evidently were millions of Americans who didn’t realize the country was in a Depression. If Kudlow and Suze had been around back then, they’d have stopped bullets for Hoover until employment stabbed climactically above 25%. Can we blame the punditry for thinking the current, totally fabricated, 6.1% jobless figure is nothing to worry about?
Last Remnant of Capitalism
As Rick’s Picks went to press, there were reports that conservatives were going to try and block the mega-bailout, presumably so that a vestigial remnant of capitalism might survive the crisis. But they are jumping in front of a speeding freight train, as far as we can tell, and we’d lay 3-to-2 odds that it is Congressional liberals who will prevail. Actually, we must admit to being somewhat sympathetic toward their designs. Shocked to hear that? Well, for one, the Democrats would rewrite the draconian bankruptcy code, which effectively blocks most down-and-out individuals from starting over with a clean slate. And for two, the Democrats are proposing that CEO pay and benefits be reined in at companies that choose to be bailed out. Sounds reasonable, doesn’t it? Paulson doesn’t think so.
But if Capitalism is about to go down the tubes anyway, which it is, why not allow lawmakers on both sides of the aisle an equal opportunity to share in the blame somewhere down the road? As for the candidates, they should stop pretending they have the answers, or that the other guy’s side caused the mess. Let them put the true perpetrator, Alan Greenspan, on trial, and get on with resurrecting America from the pyre.
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Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Tuesday, 23 September 2008 | Digg This Article | Source: GoldSeek.com
