The Economy Guy

Oil, on the other hand, decided it was just too high in price, and dumped $4.75/barrel off the price.  Speculation is still rampant.  What news caused this???  China said it was raising gasoline prices by 18%, and the world thought that this would dampen demand for OIL?????  That’s nuts.

Gold continued its slow onward, and upward, march ending at $904.  The price, now being above $900 is, in my mind, a wait and see if you can buy it cheaper position right now.

Two ex-Bear Stearns hedge fund managers were arrested today and are being charged for misleading their clients. The hedge fund was investing in those lousy mortgage instruments. Their deceitful actions are now being punished.  It’s about time, and it’s also way too late.  This is just a real example of how slimy Wall St can be.  These guys had their own money in the fund, and they pulled their own money out without telling other investors how bad the future was for the fund.

The Citibank CFO said further write downs are coming to Citibank!!!!!  This is a scary message for the markets in general, and the financial in particular.  If you remember, I’ve been warning you that the banks are hiding their real losses, and just aren’t coming clean.  It is refreshing to see Citibank (who was one of those banks hiding the truth before) coming out of the darkness and warning its investors.

The FED offered its usual $75B in loans to banks today, and guess what???  Only half of the offer was subscribed.  What does this mean?  It certainly means that banks don’t want to take more money from the FED, and it might mean that the garbage they were putting up for collateral is running dry???  We’ll see.