Pluto

I agree, deflation in not an option for the Fed. However, the bond market are going under the assumption that the TAF, TSLF, and the PDCF aren't going to solve the solvency problem, and indeed the Fed are running out of options. The slashing of interest rates this week by 1% should have seen the gold and bond yields go higher, when infact the opposite happened. Targeting interest rates doesn't seem to do anything anymore as mortgage rates in the US are now higher than before the rate cuts started. We need to keep an eye on the bond markets in the coming days. If bond yields continue to decline and gold corrects further I would say we in for a CRASH of the equity markets. Time to take out some puts me thinks.

I suspect the Gold sell off is due to T-bill yields sinking. This could be because the bond market does not believe the Feds action are going to result in more inflation. Ben's fight right now is to get inflation going, if not the bond and gold markets could be signaling an impending crash in the equity markets. Either way, cash under the mattress and gold in your possession are your only safe bets. http://finance.yahoo.com/q/bc?s=%5EIRX&amp...&q=l&c=

I am not a lawyer, but this document stinks like a rotting turd. Those investing in ETFs specifically GLD should go over every word with a fine tooth comb. http://regulations.justia.com/view/105224/ SUMMARY: The Commodity Futures Trading Commission (Commission) is proposing to exempt certain transactions in physically delivered futures contracts based on streetTRACKS[reg] Gold Trust Shares (ST gold futures contracts) \1\ from those provisions of the Commodity Exchange Act (CEA or Act),\2\ and the Commission's regulations thereunder, that are inconsistent with the trading and clearing of ST gold futures contracts as security futures. The proposed exemption would be conditioned on the compliance of transactions in ST gold futures contracts with the requirements established for security futures. The authority for the issuance of this exemption is found in Section 4© of the Act.\3\

The IMF sees through the BS. Are you thinking the unthinkable? http://www.ft.com/cms/s/0/ee21ddbc-f08b-11...00779fd2ac.html He urged policymakers to “think the unthinkable” and prepare now for what they would do if the worst case scenarios materialised and “low probability but high impact events” threatened to jeopardise global financial stability. He warned of the risk that a “global financial decelerator” could take hold, in which rising defaults and margin calls from lenders triggered forced asset sales, driving down the value of collateral and forcing further forced sales.

The Telegraph has it wrong - it was the steal of the century. The shareholders have a right to be upset. http://www.telegraph.co.uk/money/main.jhtm...cndenham118.xml

I remember buying at 720 just a couple of days before gold corrected to 575. Still have every oz. No one can time the markets.

Maybe another rate cut of 3/4 should do it. That's how things now work in the US financial markets, which I think the movie The Matrix was based on.

I disagree, shorts piled in today, they will be the new rocket fuel. The fundamentals did not change when Bernanke gifted a 3/4 rate cut to the markets this afternoon. Stay tuned...

I would loved to have been in the pits this afternoon... FED CUTS BY 3/4......BUY OIL NOW...BUY OIL....oh at the same time....SELL GOLD...SELL GOLD. Hilarious...

Close to the top are we. How do you come to that conclusion? Is it the markets returning to an orderly fashion, or the gifting of a bankrupt company to a vulture compare for the price of a major league baseball player's contract, or maybe it was the emergency rate cut on Sunday that signals the top..oh hold on, how about the 3/4 point rate cut today. No, then it must be the change in the rules to allow investment banks to exchange worthless (as no-one else wants to buy them) mortgage paper for newly minted inflationary treasury bills. This all happened in one week. When your office mates stop talking about gold and start maxing out their credit cards on gold trinkets - then you can start parroting on about a gold top. Right now the fat lady hasn't even got into her car to make her way down to the auditorium.

The Federal Reserve is becoming desperate. Bear Stearns was stolen from the shareholders and gifted to JP Morgan, the same way Northern Crock was stolen from the shareholders and confiscated by the Brown government. Paulson proudly proclaims that they are taking note of moral hazard, by riding roughshod over investors and selling for only two dollars, even though the market is still valuing the shares higher. As I said earlier the Fed is like a cornered dog and is starting to lash out. The change in the rules (which are made up now on a daily basis) allows investment banks to borrow pristine treasury bills in exchange for worthless mortgages, and interest rates seem to be slashed on a weekly basis. The crimex (which is now known as the metals shorting market) has been busy all week shorting PMs, even the crooked LME still allowed Bear Stearns to keep its positions open, while others had turned them away. Today was a coordinated smack-down from the opening bell. The US dollar is going to hyperinflated away - that is policy now. Use any dollar strength to reinforce your positions. Deflation is not an option to them, but printing money is.

Hilarious. The author better let Bernanke know before he slashes interest rates - again!

++ Sterling rallied this morning because interest cuts for the coming months has been pared back because of higher CPI numbers this am. ++ Miners selling off because Bernanke is going to speaking soon. 1% from Bad Bennie and we're off to the races again. Oh, HPC wants to stop the discussions on Gold but annoying posters keep generating new threads.

Investing in PMs is not designed to be easy, apart from ETFs of course. The volatility is induced to shake you out of your position, especially when using stops.

Today is a perfect example of why physical metals should be your core holdings. You are less likely to be spooked out of physical. Selling it is not as easy as tapping a few keystrokes.

Lehman is melting down. down 40% and sinking fast!!!!

Well the crooks at the LME are letting Bear Stearns still trade. More than likely this is to keep its short positions open until they can be taken over by JPM or another. The covering of BS PM shorts would have caused a moonshot for all PMs. http://business.timesonline.co.uk/tol/busi...icle3556387.ece The talk on the trading floors was that banks had gradually been withdrawing from dealing with Bear since suspicions heightened as to its safety on Thursday. But the London Metal Exchange displayed its confidence in the bank. In a note circulated to its clearing members it said: “For as long as Bear Stearns remains a member of the LME and in good standing at the LME's clearing house, LCH. Clearnet, Bear Stearns will remain entitled to trade on LME Select.”

Well the crooks at the LME are letting Bear Stearns still trade. More than likely this is to keep its short positions open until they can be taken over by JPM or another. The covering of BS PM shorts would have caused a moonshot for all PMs. http://business.timesonline.co.uk/tol/busi...icle3556387.ece The talk on the trading floors was that banks had gradually been withdrawing from dealing with Bear since suspicions heightened as to its safety on Thursday. But the London Metal Exchange displayed its confidence in the bank. In a note circulated to its clearing members it said: “For as long as Bear Stearns remains a member of the LME and in good standing at the LME's clearing house, LCH. Clearnet, Bear Stearns will remain entitled to trade on LME Select.”

JPM rallying over 10% on being the groom at the Feds shotgun wedding at the weekend. Hopefully investors will use this honeymoon period to sell and get out of dodge before the next shootout.

Prozac helps.

Gold and Silver bobbling around this morning. The shorts on the crimex piled in first thing only to get their paws burnt. It looks as though the second largest casino in the world, Canary Wharf, should be seeing a lot of folk looking for a new job soon. In London, where Bear employs 1,500 staff in the financial district of Canary Wharf, some employees were less willing to speak, only confirming that they worked for the bank. One Bear Stearns employee, when asked for a reaction snapped: "You must be joking. What are you, a vulture? Get a life." From which I would have replied - no you get a job. http://www.guardian.co.uk/feedarticle?id=7390866

Do you like McDonald Big Macs? I do. So when I go into Mickey D's I don't run out when the are on sale - I thank them very much and buy two.

Silver taking it on the chin this morning. C'mon silver giddy up girl.

Today is going to one to remember. All the markets are all over the place.

Lehman Brothers is toast - blackened and burnt - the Fed's nightmare is about to be realized. Down 37% pre-market.