The Dow Jones Industrial Average tumbled about 100 points yesterday — probably not because anyone really wanted to sell stocks, but because no one could think of any really good reason to buy them. This morning, the Dow is soaring more than 300 points — probably not because anyone really wants to buy stocks, but because no one can think of any really good reason to sell them again.
[Read more...]More Upside for Gold as Government Spending Continues Unabated
December 16, 2011 By Leave a Comment
Have yourself a merry little depression.
Dow up 45 points. Gold down $9.
We’re still waiting for a major correction in the gold market. Each time one begins, it seems to run out of steam before doing any real damage. At yesterday’s closing price, $1,577, gold is still solidly ahead for the year.
[Read more...]Cutting Federal Spending…One Way or Another
November 22, 2011 By Leave a Comment
The Dow fell 248 points. Oil dropped to $96. And gold down a whopping $46. Why?
“Deficit Effort Nears Collapse”
Thus did yesterday’s Wall Street Journal describe the latest Congressional failure. To put it into perspective, a group of well-meaning, intelligent members of Congress had been asked to do something very simple. Every head of a household in the nation does it. Every businessman does it. Even some college students do it.
[Read more...]No Return on Government Investments
October 7, 2011 By Leave a Comment
The news was good yesterday. Investors heard that Europe had its problems under control. Then, Obama told them that he was going to give the economy a jolt.
Investors breathed a little easier. The feds were on the case.
The Dow rose 183 points. Meanwhile, bonds went down, with the yield on the 10-year note rising to almost 2%. Oil rose too, and ended the day trading over $80. Even gold went up — $11.
[Read more...]Shutting Down the Government Debt Machine
March 9, 2011 By Leave a Comment
First, stocks rose yesterday, with the Dow up 124 points.
Gold fell $7 from a record high set on Monday. Here was the headline from Tuesday’s Financial Times:
“Gold surges to record high as investors search for haven.”
[Read more...]Championing Stimulus and the Economics of Surprisingly Normal
March 9, 2010 By Leave a Comment
If you dont read the newspapers you run the risk of missing something. Of course, if you do read them, you run the risk of catching something.
Not much in the financial news worthy of comment this morning…
The Dow gained $13. Gold lost $13. Nothing much to say about it…
[Read more...]Losing Control of the US Debt Machine
March 5, 2010 By Leave a Comment
The US is insolvent, says a report from a hedge fund. As of the third quarter of last year, the federal government had assets of $2.67 trillion and total liabilities of $14.12 trillion.
That leaves a net negative position of more than $11 trillion. By the way, this is projected to get a lot worse, fast. The feds are expected to increase their debts by about $3 trillion more over the next 2 years. Federal spending is out of control…the feds have lost control of their own budget, let alone the economy.
[Read more...]
Let the Depression Burn Itself Out
The year is winding down. The sun is low in the sky. There soon won’t be anything left of 2011.
The Dow put in a good performance yesterday — up more than 300 points when we last looked. Housing starts were at a 19-month high…which caused investors to think recovery is right around the corner.
[Read more...]