will gold go to $1500+ within the next year?is gold being artifically kept down?

[michael]

Experts Predict News Record Highs for Gold

By Pat Heller, Market Update

September 23, 2008

 

 

In the past week or so, the spot prices of gold and silver have risen more than 20 percent and 25 percent, respectively, from their recent lows. The prices of gold and silver bullion-priced products have gone up by even higher percentages as buyers scrambled to purchase any coins or ingots they could find.

 

Why the rush?

 

Simple. Since the U.S. government bailout of Fannie Mae and Freddie Mac just over two weeks ago, global financial markets have seen their greatest turmoil at least since the Great Depression. The largest U.S. banks, brokerage firms and insurance companies were on the brink of collapse or had filed for bankruptcy.

 

Since the beginning of last week, the U.S. government has taken several increasingly desperate steps to seize control of the U.S. economy. Bailouts were coming so fast and furious that the Federal Reserve ran out of resources and had to seek loans from the U.S. Treasury. Finally, even the U.S. Treasury ran out of immediate cash and had to beg $180 billion from other central banks to try to manage the liquidity crisis.

 

As a result, the U.S. government has not only taken over the two largest mortgage companies in the U.S. (Fannie Mae and Freddie Mac) it also has the option to take over AIG, the largest American insurance company. Late last week, the government announced that it will reimburse banks and financial firms for their bad debts and guarantee the assets of money market funds. These last two pronouncements have a potential cost to taxpayers, as admitted by the government, of as much as $750 billion. Typically, such statements of cost to the taxpayers turn out to be a tiny fraction of eventual cost, so expect the eventual tab to come to double or quadruple the quoted figures.

 

The legislation for absorbing the bad debts is currently in Congress. I have reviewed an early draft. It grants virtual dictatorial powers to the Secretary of the Treasury in interpreting and implementing the law. It also includes a section that explicitly prohibits other government agencies or courts of law from overruling the Secretary of the Treasury's judgment.

 

In effect, the U.S. government is in the process of nationalizing major parts of the U.S. economy.

 

The only way that the U.S. government can practically afford all these burdens is through massive inflation of the money supply. Foreign governments and investors understand this. They are intelligent enough that they have already started to ramp up efforts to dump U.S. dollars and dollar-denominated assets.

 

In place of the U.S. dollars, both American and foreign investors are seeking assets denominated in other currencies and - gold and silver.

 

One report said that until a few weeks ago, only about 2 million ounces of silver had been imported into India so far in 2008. However, in just the past few weeks silver imports were well over 30 million ounces.

 

European buyers have had so much difficulty locating any physical gold to purchase on their continent that they are blitzing American dealers to see if they have any product to purchase. In my judgment, this is it and it is now.

 

Gold and silver prices will be extremely volatile in the coming days, but I expect to see new record highs for gold and the highest prices for silver since January 1980 (ignoring inflation) within the next few weeks. If the politicians manage to hold down prices through the U.S. elections in early November, we may not reach record levels until later this year or by spring of 2009 at the very latest.

 

Last week, the price of gold experienced its largest one-day jump in price ever. Silver also enjoyed one of its largest ever price increases since 1980. Such large movements tell me that the trading partners working with the U.S. government to suppress precious metals prices have been so busy simply trying to survive that they no longer have the assets or personnel to hold down gold and silver prices.

 

Even a report released last Wednesday by John H. Hill and Graham Wark, metals analysts for Citigroup, stated, "Frankly, we're surprised that gold is not already at $2,000 per ounce." If such mainstream analysts expect the price of gold to double, that is almost a sure sign that the floodgates are about to give - real soon!

 

[Coin]

Well , The num-nutz on Ebay are bidding over $20-28 per ounce for anything in silver bullion already . The herd mentality is buzzing 'buy it high....it's going to go higher" . On the other hand, bullion dealers and suppliers are pre-selling inventory they do not even have in their possession ...and are having a tough time keeping up with demand...both foreign and domestic.

 

I made a fast buck , not really outpacing any inflation , when I bought several 10 ounce and a larger holding of Engelhard one-ounce bars just three years ago at less than $7 per ounce (avg 6.40) and sold half the stock to a local friend(gold and bullion dealer) who pays better than melt , when it went over $17/ounce , so after all the smoke settled , I essentially have my current half of the stockpile for free , if my math was anything close....so what I have should be all profit and that beats inflation doesn't it? Even if I sell it at $15/ounce I should still be able to stay above the declining purchase power of the dollar right? I could have probably done quite a bit better with gold , however , but I played with silver just to see if I predicted that the amount our gov't was hosing out the treasury vaults for the Iraq stabilization and oil venue building would cause some of this current turmoil like just about every major emptying of the vaults by the government( that never realizes that going into more debt at the speed of light is not good) .

 

Election time is around the corner and there will be some new changes in cabinet positions and then we are going to have the bazillion appointees placed into positions over the intitial and subsequently ending terms....no matter which party wins the election....it's gonna be one daunting up-hill climb for them to stabilize and harness this freight train isn't it? Especially in view of the congress and senate not really changing any seats...it will be business as usual folks having to deal with an influx of new people and I do not really see anything changing regardless of who wins the upcoming election. It's time to start the letter writing campaign to my Reps again. Geezzz. Maybe the storms will slow down and not so many folks will try to re-build along the coasts and along hurricane alley so infrastructure funds ( what there is left of it going around) won't keep getting depleted....yeah , right . I'll hold my breath on that one.

Think I'm gonna see my buddy and have him start finding me some of that bullion before it all goes into vaults for over-seas buyers , too.

[CHABSENTIA]

Experts Predict News Record Highs for Gold

By Pat Heller, Market Update

September 23, 2008

 

 

In the past week or so, the spot prices of gold and silver have risen more than 20 percent and 25 percent, respectively, from their recent lows. The prices of gold and silver bullion-priced products have gone up by even higher percentages as buyers scrambled to purchase any coins or ingots they could find.

 

Why the rush?

 

Simple. Since the U.S. government bailout of Fannie Mae and Freddie Mac just over two weeks ago, global financial markets have seen their greatest turmoil at least since the Great Depression. The largest U.S. banks, brokerage firms and insurance companies were on the brink of collapse or had filed for bankruptcy.

 

Since the beginning of last week, the U.S. government has taken several increasingly desperate steps to seize control of the U.S. economy. Bailouts were coming so fast and furious that the Federal Reserve ran out of resources and had to seek loans from the U.S. Treasury. Finally, even the U.S. Treasury ran out of immediate cash and had to beg $180 billion from other central banks to try to manage the liquidity crisis.

 

As a result, the U.S. government has not only taken over the two largest mortgage companies in the U.S. (Fannie Mae and Freddie Mac) it also has the option to take over AIG, the largest American insurance company. Late last week, the government announced that it will reimburse banks and financial firms for their bad debts and guarantee the assets of money market funds. These last two pronouncements have a potential cost to taxpayers, as admitted by the government, of as much as $750 billion. Typically, such statements of cost to the taxpayers turn out to be a tiny fraction of eventual cost, so expect the eventual tab to come to double or quadruple the quoted figures.

 

The legislation for absorbing the bad debts is currently in Congress. I have reviewed an early draft. It grants virtual dictatorial powers to the Secretary of the Treasury in interpreting and implementing the law. It also includes a section that explicitly prohibits other government agencies or courts of law from overruling the Secretary of the Treasury's judgment.

 

In effect, the U.S. government is in the process of nationalizing major parts of the U.S. economy.

 

The only way that the U.S. government can practically afford all these burdens is through massive inflation of the money supply. Foreign governments and investors understand this. They are intelligent enough that they have already started to ramp up efforts to dump U.S. dollars and dollar-denominated assets.

 

In place of the U.S. dollars, both American and foreign investors are seeking assets denominated in other currencies and - gold and silver.

 

One report said that until a few weeks ago, only about 2 million ounces of silver had been imported into India so far in 2008. However, in just the past few weeks silver imports were well over 30 million ounces.

 

European buyers have had so much difficulty locating any physical gold to purchase on their continent that they are blitzing American dealers to see if they have any product to purchase. In my judgment, this is it and it is now.

 

Gold and silver prices will be extremely volatile in the coming days, but I expect to see new record highs for gold and the highest prices for silver since January 1980 (ignoring inflation) within the next few weeks. If the politicians manage to hold down prices through the U.S. elections in early November, we may not reach record levels until later this year or by spring of 2009 at the very latest.

 

Last week, the price of gold experienced its largest one-day jump in price ever. Silver also enjoyed one of its largest ever price increases since 1980. Such large movements tell me that the trading partners working with the U.S. government to suppress precious metals prices have been so busy simply trying to survive that they no longer have the assets or personnel to hold down gold and silver prices.

 

Even a report released last Wednesday by John H. Hill and Graham Wark, metals analysts for Citigroup, stated, "Frankly, we're surprised that gold is not already at $2,000 per ounce." If such mainstream analysts expect the price of gold to double, that is almost a sure sign that the floodgates are about to give - real soon!

 

These Bail outs are not close to being over.Obama said the other day that he favored a bailout of bad student loans as well as bailouts for bad credit card debt.There has been 27 Billion promised to the Automakers. Nobody knows how much the Mortgages are worth.If the Euro becomes the Currency in place of the dollar then Oil will go to $175.00 over night and gasoline will be $5.00 a gallon.It makes no difference who is elected President. This is the Executive Branch. Congress makes the Laws.If they allow one individual this sort of power than the Purse Strings will be in the hands of the Executive Branch which is Unconstitutional.The rider that decisions can't be overturned by other Government agencies or courts of Law is protection against it being Unconstitutional.It is over.

[Conder101]

.The rider that decisions can't be overturned by other Government agencies or courts of Law is protection against it being Unconstitutional.

And that rider CAN be overridden by the courts, and then once it is, the other decisions can be overridden as well.

 

.If the Euro becomes the Currency in place of the dollar then Oil will go to $175.00 over night and gasoline will be $5.00 a gallon.

Can you explain that? Why would the change from one currency to another in itself cause an increase in price? If they switched to Euros the only reason the price of oil in dollars would rise would be because the value of the dollar vs the euro plummeted. If that happened the cost of oil in dollars would also jump even if they didn't switch to euros

[jtryka]

I think he is implying that because oil is priced in dollars, there is a broad-based demand for dollars that keeps the value higher than it might otherwise be (normally this would be offset when oil producers sell the dollars they receive, however that only happens to relatively few of those dollars as they are invested in dollar-denominated assets like Treasury securities). Further, if the price of oil was suddenly quoted in euros, not only would the current support for the dollar shift to the euro, Americans would suddenly have to buy euros to buy oil, putting further downward pressure on the dollar. Combined, the dollar price of oil would be much higher than it currently stands.

[DC Dawg]

Further, if the price of oil was suddenly quoted in euros, not only would the current support for the dollar shift to the euro, Americans would suddenly have to buy euros to buy oil, putting further downward pressure on the dollar. Combined, the dollar price of oil would be much higher than it currently stands.

It does not justify the $175 price mentioned. There are two additional considerations:

 

1. If the price is changed from dollars to euros, the price would be adjusted based on the current exchange rate. The closing price last night was $105.89. If the price opened tomorrow in Euros, it would be 71.91 (based on the current exchange rate).

 

2. If the price is changed from dollars to Euros, those in this market would have to buy Euros to purchase oil. Americans would still go to the gas pump and pay in dollars. It would affect the Exxon-Mobil, BP, Royal Dutch Shell, etc. of the world.

 

Changing the currency standard for any established market is not as easy as closing one night with one currency and opening with the other. Right now, the US dollar is the standard for international currency and commodity transfers. US dollars are the backbone of many economies (who is buying the Treasuries we keep selling?). US dollars make up the reserves of 90 countries (I can't find the NY Fed link that explains this). If you change the basis for the market, you will throw the entire world economy into chaos--which will cause the US economy to completely collapse under rampant inflation (see Zimbabwe).

 

Regardless of the verbal saber rattling by some of these dictator nut jobs, the markets will continue to be dollar-based and dollar-backed. There is no other market in the world that provides the market opportunities these countries won't support themselves.

 

Scott

[World Colonial]

These are not "market updates". It is advertising disguised as market commentary.

 

I would like to know whether there is a single one of these "Market Updates" where this guy has written about lower gold and silver prices. I think we already know the answer to that.

[CHABSENTIA]

Further, if the price of oil was suddenly quoted in euros, not only would the current support for the dollar shift to the euro, Americans would suddenly have to buy euros to buy oil, putting further downward pressure on the dollar. Combined, the dollar price of oil would be much higher than it currently stands.

It does not justify the $175 price mentioned. There are two additional considerations:

 

1. If the price is changed from dollars to euros, the price would be adjusted based on the current exchange rate. The closing price last night was $105.89. If the price opened tomorrow in Euros, it would be 71.91 (based on the current exchange rate).

 

2. If the price is changed from dollars to Euros, those in this market would have to buy Euros to purchase oil. Americans would still go to the gas pump and pay in dollars. It would affect the Exxon-Mobil, BP, Royal Dutch Shell, etc. of the world.

 

Changing the currency standard for any established market is not as easy as closing one night with one currency and opening with the other. Right now, the US dollar is the standard for international currency and commodity transfers. US dollars are the backbone of many economies (who is buying the Treasuries we keep selling?). US dollars make up the reserves of 90 countries (I can't find the NY Fed link that explains this). If you change the basis for the market, you will throw the entire world economy into chaos--which will cause the US economy to completely collapse under rampant inflation (see Zimbabwe).

 

Regardless of the verbal saber rattling by some of these dictator nut jobs, the markets will continue to be dollar-based and dollar-backed. There is no other market in the world that provides the market opportunities these countries won't support themselves.

 

Scott

 

It takes $1.46 to buy one Euro. Not the opposite way. The Price of Oil was the result of Speculation and the Decline of the Dollar.We saw Speculation come back in the $25.00 increase the other day which was the largest one day rise inHistory. The Supply of Oil did not change.It was Speculation.If the Dollar declines then we pay more for Oil when it is based in Dollars. If a barrel of Oil costs $100.00 and the Currency is converted to the Euro and then it becomes about 70 Euros for a barrel then you would be correct. assuming that it only takes $1.46 dollars to buy a Euro.This will not happen because the Dollar will be in freefall against the Euro as you are assuming that even if Oil then becomes 70 Euros that things will go on as usual.This 700 Billion Bailout will cause a decline in the Dollar. It has not been funded but the Automakers have been promised 27 Billion. We spend 700 Billion a year for Foreign Oil.The dollar will not reamain the same against the Euro and will decline against it further.My $175.00 was a Conservative estimate and assumes that the Saudis do not decrease Production as they said they would do last month. It also assumes that if our troops are pulled from Iraq that Iran does not take over the other half of the Strait of Hormuz that was taken from them in the Iraq/Iran war and which Iran says belongs to them. 60% of the Oil from the Mideast has to flow through this Strait.If these other things happen then you are looking at close to $300.00 a barrel.The dollar will not stay stable against the Euro for other reasons if there is a conversion to the Euro and nobody knows what percentage it will lose due to a lack of Confidence in it.The United States is a Debtor Nation.The only reason that other Nations haven't pulled the plug aginst it for these debts is because everything is denominated in the dollar and it would hurt them. A conversion to the Euro would eliminate these thoughts. Of Course, all of that may not happen but soem of it wil and the dollar will sink further against the Euro.Look what happned several months ago when the Dollar declined against all Currencies including the Indian Rupee and the first time in decades it declined against the Canadian Currency.The Speculators will also be active.It just isn't that simple and your scenario only applies if Oil bcomes worth 70 Euros and the dollar stays in exact relationship. Won't happen.

[DC Dawg]

Further, if the price of oil was suddenly quoted in euros, not only would the current support for the dollar shift to the euro, Americans would suddenly have to buy euros to buy oil, putting further downward pressure on the dollar. Combined, the dollar price of oil would be much higher than it currently stands.

It does not justify the $175 price mentioned. There are two additional considerations:

 

1. If the price is changed from dollars to euros, the price would be adjusted based on the current exchange rate. The closing price last night was $105.89. If the price opened tomorrow in Euros, it would be 71.91 (based on the current exchange rate).

 

2. If the price is changed from dollars to Euros, those in this market would have to buy Euros to purchase oil. Americans would still go to the gas pump and pay in dollars. It would affect the Exxon-Mobil, BP, Royal Dutch Shell, etc. of the world.

 

Changing the currency standard for any established market is not as easy as closing one night with one currency and opening with the other. Right now, the US dollar is the standard for international currency and commodity transfers. US dollars are the backbone of many economies (who is buying the Treasuries we keep selling?). US dollars make up the reserves of 90 countries (I can't find the NY Fed link that explains this). If you change the basis for the market, you will throw the entire world economy into chaos--which will cause the US economy to completely collapse under rampant inflation (see Zimbabwe).

 

Regardless of the verbal saber rattling by some of these dictator nut jobs, the markets will continue to be dollar-based and dollar-backed. There is no other market in the world that provides the market opportunities these countries won't support themselves.

 

Scott

 

It takes $1.46 to buy one Euro. Not the opposite way.

That's not what I said. If the market is $105 at the close, it is 71 euros if the market is priced in euros and not dollars. If you change currencies, the change is the conversion rate. Thus, the market will not open at 105 euros the next day. Based on what you originally wrote, I was looking at the conversion factor, not the long term ramifications. If you were talking about the long term effect of the changeover, that is a different story. But on face value, it is not what you wrote.

 

I can see you are against the "bailout" currently being negotiated on Capital Hill. That is Ok... it's your opinion--I am not sure if I share your opinion, I a waiting to see what happens. But you are too emotional about this issue and it is reflected in your writing. You have good points, but I suggest you slow down a bit and ensure you better organize your thoughts to prevent from being misunderstood!

 

I will say this... watching CNBC while working from home is like watching a train wreck in slow motion!

 

Scott

[Oldtrader3]

Actually gold and silver went down today on Monex.

[Houston Investor]

Yes - Gold will go to $1500 soon.

 

It has been artificially kept down by the same crowd requesting the bailout.

[Oldtrader3]

The boys in the blue pin-stripes don't believe in hard assets, only hedge funds, bonuses and derivatives. They don't even believe in strong balance sheets anymore. They aren't holding gold down. Demonitization is holding gold down and has since 1968. Central Banks don't need gold, they just print more money. Sheiks, third world investors and monetarists love gold. No one else cares about it. Gold will go up when the dollar weakens. It is a hedge metal.

[CHABSENTIA]

Further, if the price of oil was suddenly quoted in euros, not only would the current support for the dollar shift to the euro, Americans would suddenly have to buy euros to buy oil, putting further downward pressure on the dollar. Combined, the dollar price of oil would be much higher than it currently stands.

It does not justify the $175 price mentioned. There are two additional considerations:

 

1. If the price is changed from dollars to euros, the price would be adjusted based on the current exchange rate. The closing price last night was $105.89. If the price opened tomorrow in Euros, it would be 71.91 (based on the current exchange rate).

 

2. If the price is changed from dollars to Euros, those in this market would have to buy Euros to purchase oil. Americans would still go to the gas pump and pay in dollars. It would affect the Exxon-Mobil, BP, Royal Dutch Shell, etc. of the world.

 

Changing the currency standard for any established market is not as easy as closing one night with one currency and opening with the other. Right now, the US dollar is the standard for international currency and commodity transfers. US dollars are the backbone of many economies (who is buying the Treasuries we keep selling?). US dollars make up the reserves of 90 countries (I can't find the NY Fed link that explains this). If you change the basis for the market, you will throw the entire world economy into chaos--which will cause the US economy to completely collapse under rampant inflation (see Zimbabwe).

 

Regardless of the verbal saber rattling by some of these dictator nut jobs, the markets will continue to be dollar-based and dollar-backed. There is no other market in the world that provides the market opportunities these countries won't support themselves.

 

Scott

 

It takes $1.46 to buy one Euro. Not the opposite way.

That's not what I said. If the market is $105 at the close, it is 71 euros if the market is priced in euros and not dollars. If you change currencies, the change is the conversion rate. Thus, the market will not open at 105 euros the next day. Based on what you originally wrote, I was looking at the conversion factor, not the long term ramifications. If you were talking about the long term effect of the changeover, that is a different story. But on face value, it is not what you wrote.

 

I can see you are against the "bailout" currently being negotiated on Capital Hill. That is Ok... it's your opinion--I am not sure if I share your opinion, I a waiting to see what happens. But you are too emotional about this issue and it is reflected in your writing. You have good points, but I suggest you slow down a bit and ensure you better organize your thoughts to prevent from being misunderstood!

 

I will say this... watching CNBC while working from home is like watching a train wreck in slow motion!

 

Scott

 

It is Unconstitutional.. The U.S. Constitution states that Businesses have to be treated equal. Congress can't just bail out one Business and not all the others. Individuals also have to be treated equal so the same applies but if you are looking for direct Legal aspects then look no further than the "General Welfare " clause that is through out the U.S.Constitution.It especially applies to the Taxing and Spending clause of the U.S. Constitution in that " it be uniform throughout the United States". There were two views of it in the Federalist papers. One was a narrow view by Madison and there was a broader view by Alexander Hamilton.Hamilton "provided that spending is General in Nature and shall not favor any specific section over any other".The narrow version was later overturned by the U.S. Supreme Court in favor of the view by Alexander Hamilton. It is Unconstitutional and any Judge will tell you so. You have another exampll of this is Florida in 2000. I Voted in that Election and I will not go into details,however the U.S. Supreme court tried to warn the Florida Supreme Court in the initial stages and they ignored it.The Three counties in Florida were not using a "uniform" method for recounting the Votes as each Counth adaopted its own

method and the Florida Supreme Court refused to enforce it. This is the only reason that the U.S.Supreme court halted the procedure. The General Welfare Clause is throughtout the U.S. Constitution and specifically provides that no section of the Country shall be treated favorably over another. I don't know about Emotion.

[Oldtrader3]

We are talking about specific industries here, not the entire nation. The bailout is to finance Freddie and Fannie, to shore up Wall Street Investment Banks and to rescue AIG. The Constitution says nothing treating problems in specific industries as being the basis to rescue everyone in that class, regardless of standing. These industry's are not part of the general population. Constitutional lawyers said nothing about a Constitutional crisis when bailing out selected S&L's in the Reagan Administration. If it was not a Constitutional crises then, why is it suddenly now?

 

You do not place one class of companies as representing the entire population of the country. Reagan did not and was not required to bail out every debtor to very financial institution in the country during the S&L crisis. Nor should we have to do so now. This is a stall maneuver by a few recalcitrant lawmakers. See it for what it is!

[CHABSENTIA]

We are talking about specific industries here, not the entire nation. The bailout is to finance Freddie and Fannie, to shore up Wall Street Investment Banks and to rescue AIG. The Constitution says nothing treating problems in specific industries as being the basis to rescue everyone in that class, regardless of standing. These industry's are not part of the general population. Constitutional lawyers said nothing about a Constitutional crisis when bailing out selected S&L's in the Reagan Administration. If it was not a Constitutional crises then, why is it suddenly now?

 

You do not place one class of companies as representing the entire population of the country. Reagan did not and was not required to bail out every debtor to very financial institution in the country during the S&L crisis. Nor should we have to do so now. This is a stall maneuver by a few recalcitrant lawmakers. See it for what it is!

 

Huh.Apparently you don't get it.You can't just bail out Freddie Mac and Fannie Mae and not Lehman Brothers.I am not representing the entire population. Just because Reagan bailed out the Savings and Loan Industry does not make it Legal.This has been ignored for some time. If Congress sends Money to bail out Foreclosed people in NYC but refuses to bail out Foreclosed people in Miami Florida then it is Unconstitutional.I said throughout the U.S.There are some Judges saying that it is Unconsitutional. If nobody brings Suit then it won't make a difference. Senator De mint stated today that they are crossing Constitutional lines. There have been others including Democats ,lawyers andf Judges,The clause is specific. Again 'Spending is General in Nature and Spending can't favor one specified section over another".Do a google on the General Welfare Clause of the Constitution and./or Alexander Hamilton and the Federalist. Dont shoot the Messenger.You can't favor one specified section over another. You can't Bail out Fannie Mae and Freddie Mac and refuse to bail out other Mortgage companies and you can't bail out the Mortgage sector but refuse to bail out the Banking Sector or the Brokerage sector etc.and be in agreement with the U,S Constitution,The General welfare clause is specific. I didn't say Congress would not do it. I said and it is Unconstitutional. It is Moot. If they do it then the Money will be spent before any challenges can be made,.

[Oldtrader3]

This is an argument about how many Nymphs can dance on the head of a pin. The government can not bail out every debt in the nation, get real! Are they going to bail out broke, druggy, rock and roll stars?

[MikeInFL]

So let me get this right... The government will do nothing if a person owns a home that goes into foreclosure, but if a bank that owns a thousand of them is in trouble then the government bails them out.

 

Where's the "Equity" in that?

 

Just wondering...Mike

[Oldtrader3]

Fannie and Freddie are psuedo-government agencies which were chartered by the government and were run by political appointees. They are not the same as a private mortgage company or an Investment Bank. The government has not suggested or taken measures to buy or guarantee most debt owned by brokerage companies, Investment Banks or Commercial Banks for that matter. What is under discussion is the distribution and responsibility for the collapse of several banks, AIG and some brokerage securities obligations. Much of the commercial banking issues have been addressed privately, without Fed interference. However, what about these outlier companies who are weighed down by bad mortgage securities or bad mortgage debt which they can not support, when this debt happens to endanger the whole nation? Do you stand around and act political or do you fix the problem?

 

What everyone is forgetting is the reason why the Fed would want to assume this bad debt in the first place. The reason is because it endangers the financial well being of the country, currency stability and debt obligations owned by foreign, central banks who by the way, own much of our trade deficit and National Debt. I do not really care if they throw all of the CEO's who caused this mess into prison, they probably deserve it. Let alone rewarding them financially for what they have done to our capital markets.

 

The central issue is: do you want to save our dollar and our financial system or do you want a catastrophic financial failure that will probably put us into a deep depression with further deflation of dollars, real estate and almost everything else. We are arguing about the Bill of Rights and early 18th Century interpretations of banking which have no precedent in our courts or in the way that this country has been run for the 78 years.

 

Now, are we going to stand around and argue about Constitutional procedure while our economic standing is flushed down the drain or are we going to show some bias towards action and solve the problem. Yes, it needs to be solved sooner than later. Do you want your mortgages and other debt to become due and payable next Tuesday? Or, do you want to continue some semblance of national financial stability and make changes after this immediate crisis when all have time to address these issues. That is the question. The rest is frankly noise!

[Houston Investor]

"Let them eat cake," said Marie Antoinette Queen of France.

 

Is our govenment telling us to "eat cake" by wanting to quickly push a deal to bail out worthless corpie scum and "investment banks" that operate like boiler rooms?

 

I say no to the bailout! Let the market take care of it! Eventually prices will settle to a nice low level where investment is again worthwhile while gold soars.

 

I think it may be a good time to load up on gold before it really starts to go up.

[MorganMan]

My home is paid for, my vehicles are paid for, I have no monthly credit card debt (I pay them off each month)

 

My parents taught me the RIGHT way to live, to wait and save for things I want. I did as they advised....

 

I say, Let it all go to hell. I know how to grow my own cattle and corn, and how to aim.......

 

and my wife is a good shot also,,,,,, That is why I behave.....

 

 

MM