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September 19, 2008 (6:00 AM)
A Week That Will Be Remembered

What was the most memorable event so far this week?  Without question it was when, for a moment, confidence in paper failed and gold logged its strongest daily advance in history. This ‘moment’ arrived as U.S. investment banks were being bludgeoned, the credit markets seized, and shortly after the first U.S. money market fund in more than a decade ‘broke the buck’. Not really being discussed by the mainstream press, the surge in gold on Wednesday September 17, 2008 meant that many investors and money managers simply wanted out of the paper chase. Terrifying…

But fear not, U.S. stocks soared late yesterday on the expectation that Bernanke and Paulson are ready to hatch another scheme and early this morning the SEC announced another ban on short selling. What’s more, nearly every major market across the planet is being positively influenced (either psychologically or directly) by government and/or regulatory intervention. To be sure, central banks around the world have covertly and overtly united, China and Russia are buying stocks, Europe has rigged the rules of the game before their bailouts come to pass, and Japan…well, it goes without saying they are in.

Needless to say, paper has lived to rally another day and the price of gold has halted its historic surge. Bailouts, blowups, crashes, rallies, and more bailouts.  And there is still a full trading day left…


Paulson, Bernanke Push New Proposal to Cleanse Balance Sheets Bloomberg
SEC Halts Short Selling of Financial Stocks to Protect Investors and Markets SEC

 

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