Thoughts on Markets

Thursday, June 09, 2011

Worse than 2008? - Ego War Suspicions - Miners at bargain prices - Gold & Silver Up against all currencies

It remains difficult to see what the market is saying. Earlier the metals and miners were down. Now they are up, but not significantly. The general market is up and, unfortunately, the miners seem to be following the DOW.

We can still rest in King Jesus, Who really knows what He is doing. To know Him is to serve Him for the price He paid for His people. Praise Him daily!

Money News:
Jim Rogers: Staggering Debt to Spark Even Worse Financial Crisis Than 2008
Staggering debts and loose monetary policy is going to send the United States into a financial crisis worse than the one in 2008, says investor guru Jim Rogers.

"The debts that are in this country are skyrocketing," Rogers tells CNBC, adding "in the last three years the government has spent staggering amounts of money, and the Federal Reserve is taking on staggering amounts of debt." Jim Rogers has a good deal of insight and it is well to pay attention to what he says. HERE.
 
Truth Out:
The Pesticides and Politics of America's Eco-War
Starvrum points to a lone oysterman gathering the day's catch from neighboring mudflats and shakes his head. Starvrum used to harvest oysters from the thick mud exposed by the low tide, but he has not brought in a catch in three years. He refuses to participate in the lucrative business, a traditional mainstay of the local economy, because the pesticides sprayed on adjacent mudflats drifted onto his oyster beds. This is editorial opinion, but is from a apparently reliable source. It reports a vested interest of the ego movement, the USG, and the pesticide producers which is scary to me. HERE.
 
Seeking Alpha:
DOW/Gold Ratio Headed Lower
For years, I have been monitoring the ratio between the Dow Jones and the price of gold. While not a comprehensive gauge of the stock market, I do like to keep an eye on it in order to get an alternative view of the value of the stock market.
As we all know, the markets have essentially doubled since their lows in March of 2009. We all love rising stock markets, but a problem is introduced when you mention that the dollar has weakened in the same time frame. If stocks are going up, but the dollar is going down, is that a good thing? This is an interesting read. HERE.

Seeking Alpha:
Sorry Mr. Bernanke: There Will Be a Double-Dip Recession
Despite what U.S. Federal Reserve Chairman Ben S. Bernanke said in his speech at the International Monetary Conference yesterday (Tuesday), it looks very much like we're headed for a double-dip recession.
Indeed, the economic reports of the last week or so demonstrate that the U.S. job machine was never really jump-started after the Great Recession of 2008-09.
The upshot: The U.S. economic recovery is stalling, and we're almost certainly looking at a double-dip downturn. Agrees with Jim Rogers in the end. HERE.

Seeking Alpha:
The Summer Crash of 2011, Or the Great Re-Adjustment
“All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident.” - Arthur Schopenhauer
Allow me to start off this article by stating that I have no intention of being an alarmist. However, there are enough distortions occurring which indicate the possibility of a significant decline in the stock market.
Followers of my articles note that my interests lie in inter-market relationships. Whether it's looking at sectors, stocks, bonds, commodities, etc., I believe in presenting data in a rational way for readers to make up their own minds as to the implications of my analysis. Looking at these types of relationships led me to publish the article titled "Was that the Top for Silver?" just a few days before the massive decline occurred. Also, interesting. HERE.

Politico:
Feds defend Department of Education raid on a home
The Education Department is confirming that its inspector general authorized a raid on a California home Tuesday, but it says the officers were conducting a criminal probe, not pursuing a woman because she could not pay her student loans, as has been reported.
The story of the Stockton raid went viral early Wednesday after a local ABC station reported that the inspector general and local law enforcement authorities had executed a warrant because she had defaulted on federal student loans.
Justin Hamilton, the Education Department’s press secretary, said that story is wrong.
“While it was reported in local media that the search was related to a defaulted student loan, that is incorrect. This is related to a criminal investigation,” he said. “The Inspector General’s Office does not execute search warrants for late loan payments.”
The TV station since has taken down the original story from its website and posted an updated one.
The Department of Education? More Big Brother intrusion into our lives when such can fall within the purview of such a department. If you have not, get and read Orwell's 1984. It is truly insightful and very scary as it is getting fulfillment here in America.  HERE.

Mine Web:
Commodity prices should snap higher in H2, dollar unlikely to recover until 2012  
Morgan Stanley Morgan Stanley does not expect Fed to raise rates for at least another year. Chinese economic growth should be sustained. Euro looking weak Watch US payroll figures for pointers towards QE3. They dare to hint of a QE3. Perhaps, they do have some insight. It will come, but likely under another alias. HERE.

Mine Web:
Bearish on currencies so silver and gold companies interesting investments
Jason Mann Mann, a senior analyst with Freestone, explains why about one third of $2.1 billion in assets under management are invested in non-traditional assets, including precious metals. Gold Report interview. HERE.



 
Miners from Scottrade:
Currencies from Kit Co:
Currencies from Kit Co:

Some NOON Prices: DOW up 118.9 to 12167.43; S&P up 12.79 to 1292.35; NASDAQ up 15.71 to 2690.63; Gold up 5.80 to 1543.40. ND Silver up 0.61 to 37.41.

Best to each, Doug

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