The Tourniquet on the Market
The action of the Fed is similar to the action of putting a band aid on an artery leak. It may help for a while, but ever more are required and will, without doubt, be applied. Realize that this is still pushing on a string. Eventually, the string gets too long for successful pushing. However, it seems to have worked again this time.
Chuck Butler in the Daily Pfennig from Everbank.com reported today that Bank of America, Citi Bank, JP Morgan Chase, and Wachovia backed the armored cars up to the trough and borrowed $500 Million each at the new rate.
It seems that these were the banks with very heavy exposure to sub-prime lending and each needed a transfusion. Wonder how much more each needs.
We are still not out of the woods on the sub-prime fiasco. There is more to come as foreclosures and late payment notices are increasing in virtually ever area of America. I do not believe we are any where near getting out of the woods on this.
The SA mining workers union recommended that members accept the latest offer to avoid a strike. This will help our South African mining stocks when the members vote their acceptance. We will see DROOY and HMY move again. Both are good companies, but have been hurt a bit by the threat of the strike.
Gold is at 664 and silver at 11.74. Both are beginning to show more life. The selling of gold by Swiss and other banks recently may have impacted upon the price of gold. Perhaps, this was a bit more of the war on gold. Remember, central banks and governments would rather have the paper currency which they control in the hands of the citizens. It is a matter of control as are most taxes.
You might consider Ron Paul running for president. He is the one man in Congress who has consistently spoken AND VOTED for the Constitution and stable money. None of the main stream candidates have. In fact, most are solidly against these issues, because both limit their power. Think about it!
The DJI are up about 48 already this morning and the mining stocks are moving in the same direction. Maybe we should be bottom fishing before the real move comes. If you do, do so very cautiously. Also, I will be selling the general market except for natural resource, energy, and our mining stocks.
Remember that our Sovereign God is in complete control of all. Therefore, it is extremely important for us to be in concert with Him at all times. This can only be done by prayerful study of His Word: the bible.
Best to each, Doug
Chuck Butler in the Daily Pfennig from Everbank.com reported today that Bank of America, Citi Bank, JP Morgan Chase, and Wachovia backed the armored cars up to the trough and borrowed $500 Million each at the new rate.
It seems that these were the banks with very heavy exposure to sub-prime lending and each needed a transfusion. Wonder how much more each needs.
We are still not out of the woods on the sub-prime fiasco. There is more to come as foreclosures and late payment notices are increasing in virtually ever area of America. I do not believe we are any where near getting out of the woods on this.
The SA mining workers union recommended that members accept the latest offer to avoid a strike. This will help our South African mining stocks when the members vote their acceptance. We will see DROOY and HMY move again. Both are good companies, but have been hurt a bit by the threat of the strike.
Gold is at 664 and silver at 11.74. Both are beginning to show more life. The selling of gold by Swiss and other banks recently may have impacted upon the price of gold. Perhaps, this was a bit more of the war on gold. Remember, central banks and governments would rather have the paper currency which they control in the hands of the citizens. It is a matter of control as are most taxes.
You might consider Ron Paul running for president. He is the one man in Congress who has consistently spoken AND VOTED for the Constitution and stable money. None of the main stream candidates have. In fact, most are solidly against these issues, because both limit their power. Think about it!
The DJI are up about 48 already this morning and the mining stocks are moving in the same direction. Maybe we should be bottom fishing before the real move comes. If you do, do so very cautiously. Also, I will be selling the general market except for natural resource, energy, and our mining stocks.
Remember that our Sovereign God is in complete control of all. Therefore, it is extremely important for us to be in concert with Him at all times. This can only be done by prayerful study of His Word: the bible.
Best to each, Doug
posted by Doug @ 8:23 AM
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