In the end the markets are going to have their way. Companies that are over leveraged will go under. Bad investments will be liquidated; excess capacity will be sold, abandoned, or liquidated in bankruptcy. Stock prices will experience their eventual waterfall decline. In the end as throughout all of history the markets will have their way with governments, for in the end markets are much bigger than governments. Politicians, analysts, and economists have not defeated the forces of the market in the same way that man has not learned to control nature. If a hurricane force like storm is building there is nothing the government will be able to do to prevent it other than to not stand it its way. In the end the markets will crush the forces railed against it just has a hurricane destroys anything in front of its path.
With this in mind, it is getting close to the time to be putting new short positions, add to gold and silver positions, and move out of the dollar. Despite money and cordite coming out of the woodworks, and the strongest intervention in the markets seen since the 1987 crash and 1994 peso crisis, technical aspects of the markets look dismal. Put/call ratios have fallen rapidly, the TRIN is low, the advance/decline line has been barely able to rise and volume keeps receding. Daily buying surges and short-covering rallies have barely been able to generate a respectable A/D line, which tells me the markets will soon be heading for trouble. The required 10-k reports for 2002 will be due at the end of this month. The ones I?ve seen so far speak volumes of future profit problems. This year?s profit killer is going to be pension plan contributions. Pension funds are hemorrhaging at the government, state and federal level. They are equally bad at the corporate level. Many pension plans are now so grossly underfunded that it is going to take massive pension contributions to get them even close to covering future pension liabilities. We should soon see all storm fronts start to unite this year as troubles in the financial markets merge with troubles in the economy and the financial markets to form the Perfect Storm. I believe it will be some sort of ten-sigma event coming from either the geopolitical side or from the derivative sector that sets the different storm fronts on a course toward collision.
Your postings have certainly charted a course opposite that of gold. You have retrieved yourself from the brink of ignore status in a manner that I can only compare to DROOY in an uptrend.
Now about this Miss Muffet stuff. Even though you appear to be the world's smartest woman, you aren't nearly liberal enough, so that eliminates Muffet as as alias for Hillary. Besides that, I thought her field of expertise was cattle futures, not gold. Got me...????
BTW What the hell is curds & whey?
And a Tuffet?
These are all-consuming imponderables that are introduced to everyone as a child, evidently to aggravate, & use up precious brain hard-drive space for a lifetime. If we can't resolve the Iraq War & the Gold markets tonight, can we at least resolve the muffet-related issues?