Trillion Dollar Lessons
Stocks surged again on the government bail out plan. Stocked ended DOWN on the week. Bonds fell in sympathy – with interest rates soaring.
Dollar fell slightly against the Euro, and gold corrected slightly. See my purchase advice on gold below.
Oil and gasoline rose dramatically, and it’s just like the good old days having oil jump so much. It just feel comfortable.
In the news today…..
The US government has announced more of its bailout plan for all the financial institutions of the US. It’s only going to cost YOU between $500B and $1Trillion. Not much – I’m only kidding. Do you remember that I was predicting that the total cost of the housing meltdown would be between $500B and $1Trillion? Not a coincidence these numbers are the same. BUT, the financial sector has already written off over $300B of the housing mess. So what happened to this $300 in the equation? The real bill of the financial meltdown will TOTAL from $800B to $1.3Trillion. That’s what’s happening. It’s more than housing. Paulson is just lying to you when he says “It might not cost you anything.” He also said “We might not have to bail out Freddie/Fannie….” That naturally was a lie too. This financial meltdown is more than housing. It is the entire credit system of the US – and more importantly – of the WORLD. And, the US will be playing the role of “banker to the WORLD.” Who else is telling you that??? No one, I know. The rest of the financial experts (and amateur news channels) just don’t see the big picture – yet. It’s going to have to hit them between the eyes – like being run down by a bus – before they start talking about it.
What’s really happening?????
The world’s trade system with the US as the world’s “reserve currency.” is fatally flawed. This system has caused ALL the problems we are encountering today. To put not too fine a point to it – WE ARE RESPONSIBLE for this mess. And the roosters are coming home to roost – there are no chickens in every pot.
I’ll be laying out all this mess in a logical way so you can understand it – and more importantly – you can do something about it that’s logical, and apt to make you money – and more importantly – protect your own assets.
Here is the bottom line – we are starting into a “world deflation.” The US can cause a huge inflation first, but it’s too early to know what Bernanke is planning – but he has that tendency. And Bernanke’s tendency is a very important point regarding your future investments – so stay tuned.
Here are Today’s numbers:
Dow Jones 30 Industrial – 11,388 (up 389 points)
10 Year Treasury Bond – 3.77% (up 0.33%) – an amazing increase in interest rate level.
Euro – $1.4474
Gold – $865 (down $32) – this was the correction I was looking for today. Buy around $850 and below.
Oil – $104.55 (up $6.67) – up just like the good ‘ole days.
Gasoline – $2.60 (up $0.12)
