Bernanke's comments

Ben Bernanke used the phrase "close to faltering" today. Wondering how that will impact markets, etc.
(markets often LIKE bad news...... but I'm really wondering...).

Europe is a ticking economic bomb, everyone knows it, and they are just delaying as long as they can. Our economy will feel some impact from reduced exports. Interest rates are effectively negative.
The best plan, borrow as much money as you can, buy gold and bury it somewhere for safe keeping. Then either pay off the loans in a year with increased gold price, or just default on the loan, everyone does it no big deal.

Bernake is just covering his tail so he can say "told you so" later.

Gold is over-priced ---- I've been buying guns instead......

I started buying gold and silver when I saw the scam in real estate in 2007 evolving........may now be too late to get in on the run up. Get a tent and a pan.

bailey bud wrote: Gold is over-priced ---- I've been buying guns instead......

Not an entirely bad plan. I have to ask if anyone else has noticed that the commodities markets have been indicating platinum has less value than gold for the last week or so? Currently gold is valued at $1616.00 an ounce and platinum is valued at $1468.60, since when was gold worth more than platinum?!

Is now the time to entirely divest the cash from stocks and bonds to go all in with gold or is this a fluke that really indicates that gold is over valued? Is now the time to scoop up as much platinum as you can while the price is low? What is causing the volatility with gold and platinum?

Are there any safe harbors left in this economy? Once the bubble goes up if you have paper money, it's just paper; if you have precious metals but no economy to quatify its value what do you really have? Food and water will be worth more than gold, silver and platinum.

Hoarding rice and beans?

Bernanke's and Obama's comments this week have me feeling that they know things are going to get much worse before they get better. Or they know a coming crisis or default?

I saw just a blurb and haven't been able to find more, did anyone else see the story about people making a run on a national bank in St. Louis? Supposedly SWAT wouldn't let people withdraw their cash, told to do it online instead, but the online bank has been down for days.

Regarding gold: When "everybody" is investing in something as a "can't lose" proposition, it's way past time to get out of the market.

AspenValley wrote: Regarding gold: When "everybody" is investing in something as a "can't lose" proposition, it's way past time to get out of the market.

I said that one year ago & I said that six months ago too. If you have money left, there just aren't a lot of good places to put it, hence the popularity of gold.

If I knew when it would peak and where it would peak, I would get in, but so far I will stay on the sidelines.

otisptoadwater wrote: Is now the time to entirely divest the cash from stocks and bonds to go all in with gold or is this a fluke that really indicates that gold is over valued? Is now the time to scoop up as much platinum as you can while the price is low? What is causing the volatility with gold and platinum?

Now that interest rates are effectively zero - there's not a lot of arbitrage opportunity (low hanging fruit). The pump and dump managers are too impatient to invest in quality businesses - so they're investing in commodities and metals - where they can make their money. They buy, monopolize, then sell (that's what happened with rice markets a few years ago - and people starved because of it). The currency markets aren't predictable or stable, so I think the more exploitive traders will stick to opportunities in the USA.

People invest for two reasons: a) asset preservation; b) Profit. I'm motivated more by the former than the later. I'm a bad opportunist/exploiter - but would like my money to keep up with inflation.


My interests: Cash; Utilities; Communication stocks (communication infrastructure - not interested in the media); small cap education enterprises (Apollo is not small cap).

I avoid: gambling enterprises; "defense" contractors; tobacco; alcohol; large cap stocks; media stocks (too bad - with the election coming - they'll do great); gold (overpriced); stocks that rely heavily on interest-bearing assets (banks, mortgage companies, etc).