Interest Rate Warning….. Have you noticed that interest rates are going up again? This morning, the 10 Year Treasury Bond is at 3.65%. The FED QE2 actions are clearly associated with rising interest rates, even though those actions are supposed to keep the rates down. The 10 Year Treasury has risen 1% since the announcement [...]
In the news today….. Unemployment is 9.0% – Really?? How does the unemployment rate drop from 9.4% to 9.0%, but the employment market only gains 36,000 jobs? The answer is very easy if you look past the headline. The number of people in the “unemployment pool” fell from 15 million to 13.9 million people. In [...]
The Markets Today….. It has been awhile since I talked about how the various markets are doing in the US, so now is a good time to look at these markets and explain a little of what is actually happening. Gold – as this is my recommendation for all readers to consider for inclusion in [...]
The US Housing Market….. I think it would be worthwhile putting the size of our financial problems into perspective. First of all, the US Fiscal Budget Deficit is about $14 TRILLION. Let’s use that number as our benchmark. If we are ever to get back to a healthy budget, we have to pay off that [...]
All markets went sideways today… In the news today….. 23% of mortgages – in the US are underwater (owe more than the property is worth). This could sink the housing market by itself if a sufficient number of these mortgages go into foreclosure. What could cause that to happen? Hopelessness in my opinion. If the [...]
Stock were bouncing around – more volatility and I love it. However, everything went sideways – a typical Friday. Gold recovered its recent downdraft of profit taking. In the news today….. Europe’s GDP – rose to PLUS 0.4% this past quarter. This means that Europe is growing right now, but at a very slow pace. [...]
Gold, Gold, Gold….. NEW HIGH!!!! That’s the story today. Nothing else. Gold blew off the top of the gold chart today. Why?? India bought 200 tons of the IMF’s 403.3 tons that it said it was going to sell. India’s purchase of this gold (a) reduced the overhang of the IMF sale, i.e. reduced the [...]
Basically all the markets moved sideways, except Gold which rose significantly. I am watching the stock market, as I believe it could be on the cusp of a breakdown. The DJ30 was “at” the 50 day moving average last Friday, but bounced up today. Tomorrow could be the day it goes below the 50 DMA. [...]
Gold crashed through $1000/ounce today, and struck $1008 on the way. Gold pulled back during the day, but maintained a gain for the day. The Dollar crashed to the lowest levels this year; losing over 2 cents against the Euro. Taken together with the Gold move, you can see that something fundamental is happening in [...]
Sorry for the early closing of economyguy today, but I have to get up early and face an Italian pilot flying Alitalia. Stocks went sideways today again, as did bonds, as did the Dollar, as did oil, as did gasoline. Gold, on the other hand, SOARED today as it did yesterday. Hurrah. Breaking those topside [...]
