The markets got killed this week and S&P just downgraded the US bond rating.
Is the double dip recession here?
8 comments:
Goldilocks
said...
A double dip is required to enable QE3.
There is no solution to the global financial crisis; this is a structural problem and cant be papered over but they will try. When all options to save the system have been exhausted there will be a reset of the global financial system.
2012 is shaping up to be a bad year and it will go downhill into 2016/17.
Goldilocks, why is the gold price not going ballistic? Biggest one-day Dow falls since 2008, and gold hardly twitched. Is this evidence that the smart money thinks gold is a bubble rather than a safe haven?
I know an oke who sells leg cream to high end salons and makes over R 100 K per month, and HE says gold is not rising any more because it is in a blow-stage and has already factored the worst in
I know an oke who sells leg cream to high end salons and makes over R 100k per month, and he says that the "correction" in the stock markets of Monday was entirely expected and forecast in the charts and that anyone with half a brain should have made money on it
He also says that the property market in south africa is fucked
Has gold gone ballistic? Yes it has. Gold has sliced right through the $1764 Jim Sinclair target. This target for Jim is the point where confidence is lost; the emperor has no clothes moment. A paradigm shift has ocurred which will become evident in the months and years ahead.
For gold to hardly twitch in a market meltdown means it is a safe haven. It doesnt mean everyone is rushing into it but its being sold off to cover losses on the one hand and being bought as a safe haven by others. Back in 2008 gold was considered a risk trade, and it was dumped hard. That was wonderful as one could buy gold at R7200/oz at the bottom even with the rand over 9 to the $. As we speak gold is at R12500.
Treasuries have also risen, I would expect them to, even with S&P's downgrade. Where else is big money going to go? JPM announced it would charge for cash being hoarded at their banks and started to deposit excess at the Fed. Swiss franc is also now the safe haven currency but it has a historic realtionship with gold almost a paper proxy in a way.
So this is where money goes today. vastly different to 2008 when everyone and their mother barreled into treasuries.
This is a slow motion train wreck people which will play out for the rest of this decade and into the next.Things dont change overnight so watch the trends.
8 comments:
A double dip is required to enable QE3.
There is no solution to the global financial crisis; this is a structural problem and cant be papered over but they will try. When all options to save the system have been exhausted there will be a reset of the global financial system.
2012 is shaping up to be a bad year and it will go downhill into 2016/17.
Goldilocks, why is the gold price not going ballistic? Biggest one-day Dow falls since 2008, and gold hardly twitched. Is this evidence that the smart money thinks gold is a bubble rather than a safe haven?
Good question Bean Counter.
I also can't think of an explanation as to why gold does'nt skyrocket?
Anyone ?
I know an oke who sells leg cream to high end salons and makes over R 100 K per month, and HE says gold is not rising any more because it is in a blow-stage and has already factored the worst in
The best part of the double dip is that I get to tell all my sheeple friends - I was right!
I know an oke who sells leg cream to high end salons and makes over R 100k per month, and he says that the "correction" in the stock markets of Monday was entirely expected and forecast in the charts and that anyone with half a brain should have made money on it
He also says that the property market in south africa is fucked
I definitely believe there is a very high chance of a double dip recession.
The banks are not increasing the interest rates, despite the cost push inflation, to try solve the insolvable problem.
@BC
Has gold gone ballistic? Yes it has. Gold has sliced right through the $1764 Jim Sinclair target. This target for Jim is the point where confidence is lost; the emperor has no clothes moment. A paradigm shift has ocurred which will become evident in the months and years ahead.
For gold to hardly twitch in a market meltdown means it is a safe haven. It doesnt mean everyone is rushing into it but its being sold off to cover losses on the one hand and being bought as a safe haven by others. Back in 2008 gold was considered a risk trade, and it was dumped hard. That was wonderful as one could buy gold at R7200/oz at the bottom even with the rand over 9 to the $. As we speak gold is at R12500.
Treasuries have also risen, I would expect them to, even with S&P's downgrade. Where else is big money going to go? JPM announced it would charge for cash being hoarded at their banks and started to deposit excess at the Fed. Swiss franc is also now the safe haven currency but it has a historic realtionship with gold almost a paper proxy in a way.
So this is where money goes today. vastly different to 2008 when everyone and their mother barreled into treasuries.
This is a slow motion train wreck people which will play out for the rest of this decade and into the next.Things dont change overnight so watch the trends.
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