Its exploding with the credit rating downgrade. I remember when it was about 1300 a couple months ago and now its pushed past 1700. Now I can't afford gold even more!
From what I'm reading this is actually the beginning of some tough economic times to come. Within the coming weeks there will most likely be a QE3 infusion of cash into the economy by the Federal Reserve. This will buoy the economy for a moment but it wont last. The interesting thing is Bernanke will not call this QE3. Its going to go by a different name (most likely). But it will serve the same purpose. Print more money we don't even have.
Some of my sources are calling this the nail in the coffin for the US. Historically all economies have chosen to print more money rather than take their medicine and allow the markets to correct themselves. Pain is put off using tactics that will inevitably cause more pain. And historically every one of these economies collapsed. Why should we think we are immune to the lessons of history?
Do NOT invest in stocks right now. We're not even close to the floor.
2 comments:
agreed- we should talk about this (PS- sorry I'm posting post after post) because I've become very interested (in why, not in investing) but not familiar with what's going on.
Regardless of your political ideology the only politician who even comes close to understanding the truth of whats going on with the economy (and willing to admit it) is Ron Paul. I suggest reading his book End The Fed if you want a red pill kind of read. There is no way someone this smart and this against the status quo could ever win the presidency though.
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