enrieb

Great news from bubble land, US stocks see their biggest gains in five years after the worlds central banks act to calm credit markets. http://news.bbc.co.uk/1/hi/business/7289815.stm $200Bn here http://news.bbc.co.uk/1/hi/business/7149329.stm $500Bn there A $416 gain in the dow suggests that the bubble is in great shape and if you wish to invest in the bubble yesterday was a great buying opportunity. Is this the first taste of what Jim Puplava has been referring to as an Oreo? Should you sell into this rally or see it as a turning point? All that is needed to keep the bubble alive is for central banks to lend banks somewhere between $200-700Bn and keep rolling the loan over each month. Sorry but I am not very fluent in emoticons, is there a suitable sarcasm emoticon that I can use to frame my post correctly?

This is a better article by bloomberg about the $200 billion cash injection by the Fed Fed to Lend $200 Billion, Take on Mortgage Securities By Scott Lanman http://www.bloomberg.com/apps/news?pid=206...&refer=home March 11 (Bloomberg) -- The Federal Reserve, struggling to contain a crisis of confidence in credit markets, will for the first time lend Treasuries in exchange for debt that includes mortgage-backed securities. The Fed said in a statement in Washington it plans to make up to $200 billion available through weekly auctions, and officials told reporters the program may be increased as needed. The Fed coordinated the effort with central banks in Europe and Canada, which plan to inject up to $45 billion into their banking systems. U.S. stocks rallied the most in six weeks on optimism the initiative will help avert a wider credit crunch.Treasuries fell, while the premiums investors demand for debt backed by home loans guaranteed by Fannie Mae remained near a 22-year high.

I agree completely, it is much better here, no trolls and no unusual moderator decisions.

Central banks plan emergency cash Last Updated: Tuesday, 11 March 2008, 15:38 GMT http://news.bbc.co.uk/1/hi/business/7289815.stm Central banks have announced another round of co-ordinated auctions to provide more cash to financial markets. Shares have risen on the news from the US Federal Reserve, the European Central Bank (ECB), and central banks of the UK, Canada and Switzerland. They follow on from similar emergency auctions in December and January. The aim is to cut the cost of lending between banks, which has been inflated by the credit crunch. New York's Dow Jones average rose 1.8% on the news. The central banks are concerned that credit is still freezing up because banks don't want to lend to each other. This could affect consumer spending, company investment and the housing market. In the UK, mortgage lenders announced a sharp slowdown in the number of home loans approved due to difficulties in raising funds on commercial markets. The authorities are worried that the credit crunch shows few signs of easing, eight months after the crisis began

Quantum's Jim Rogers says US 'out of control' From Times Online February 28, 2008 Leo Lewis, Asia Business Correspondent http://business.timesonline.co.uk/tol/busi...icle3451136.ece Jim Rogers - who co-founded the now closed Quantum Fund with George Soros - told 750 global fund managers in Tokyo today that, America is “completely out of control”, there will be a 20-year bull market in commodities and that prices will be in turmoil. And he also warned that it “made sense” if global competition for resources ended in armed conflict. Mr Rogers told delegates to the CLSA investment forum that the prices of all agricultural products would “explode” in coming years and that the price of gold, which hit an all-time high of $964 an ounce yesterday, will continue its surge to as much as $3,500 an ounce. Gold would continue to rise, the analyst Christopher Wood told fund managers, “because it is the exact opposite of a structured finance product”. In a blistering attack on US monetary policy and the “helicopter cash drop” responses of the Federal Reserve, Mr Rogers described the American dollar as a “terribly flawed currency”.

Dow $11,740.15 Gold $973.15 the ratio is now 12 ounces to the Dow. (also just realized as I was typing that in my last post I had the ratio the other way round, going to nip back to edit and hopefully save face) Edit: nope can't edit the last post doh! still 10 ounces to 1 dow is possible by the end of the year.

Welcome Timil it's just getting interesting, despite last weeks upper $990+ price, this week has started of with gold down to $970 Yet it is acually in an even better position than last week when you measure it against the Dow. Currently the ratio is 12.1 to 1 ounce of gold I think we could easily see 10 to 1 by the end of the year. If todays $107 oil price holds in that range then it could well help lift gold over a thousand despite sell offs.

Dow ratio to Gold 12.28 for one ounce of gold. When you measure it against the dow its been a good week for gold despite not getting to $1000.

Do you think it would have happened it the price of gold had collapsed back to the $600 level? Now it seems obvious that the current price of gold is consolidating around the upper $900 range the sentiment from those not holding gold has changed towards us gold investors. Should gold go to the levels predicted even by the more conservative gold bugs then we should expect a lot of hate coming our way. If some of those with STR funds or saving for house deposits had put some of their cash into gold they would have done quite well. Still its not so much that gold has gone up in value, it is that their fiat cash bank balances have lost purchasing power against gold, oil, corn, bread etc..

Dow Jones to Gold ratio 12.6 to one ounce, that doesn't look to bad to me.

I have been meaning to make the full transition over to GEI for a while now, the discussion is generally of a much higher level, though this often means that I don't have much to add. GEI Seems like a much more tolerant forum towards gold, economics, inflation and deflation, its been disappointing to see many of the people who add so much intelligent content to HPC be ridiculed or have outright abuse thrown at them in recent months. Posters like, Cgano, GOlfinger and even Dr BUBB give important insight into the movements of the market for very little thanks. As a slight suggestion though, given that this is a new forum and we are guests I think it would be best to hold off on pictures of rockets etc.. for the time being, until the long term GEI forum members have expressed their opinions on how they feel about a gold thread in their main discussion forum.