Weekend Bailout
Stocks started out down this morning, spent most of the day about even, and ended up 121 points. There was very light volume in stocks today, so it’s best to ignore today as being significant.
All the other markets went sideways.
In the news today….
The news coming out of the talking heads in DC is that there will be a deal on the “bailout” sometime – either tonight or by Sunday night. I think Sunday night is a better guess – this must be more complicated than just one day’s talking to get a bill out to spend that much money – but I’m not a politician, thank goodness. Should be a fun weekend to watch the news as all the politicians are tarred with this mess, and all politicians want to look angelic instead.
The Presidential debate is on tonight – so I got that prediction wrong. I wish both candidates the very best.
Wachovia and Citigroup are in discussions on a merger – this is very preliminary so should be ignored – except for the fact that both of these banks are in financial trouble, and should be put on the ‘watch list.’
Here are Today’s numbers:
Dow Jones 30 Industrial – 11,143 (up 121 points)
10 Year Treasury Bond – 3.83% (down 0.04%)
Euro – $1.4593
Gold – $889 (up $7)
Oil – $106.89 (down $1.13)
Gasoline – $2.67 (down $0.03)
Is silver as good of an investment as gold right now?
Hi Steve,
I am a little leery on silver, but not on gold. My reasoning is as follows: Gold has a pretty well known rate of production, and destruction. Silver is more tied to economic activities, and if we go into the tank, as i think we will, then silver won’t do as well as gold. Gold is the first thing that people think of when they are scared of holding dollars; silver is second; platinum is third.
Silver does have a nice upside that small coins of silver (old US coins) will be more tradable if the world really goes into a depression – but you will have some advance notice of that if it happens.
Tom